NI 43-101 TECHNICAL REPORT on the SAN ... - Goldgroup Mining

<strong>NI</strong> <strong>43</strong>-<strong>101</strong> TECH<strong>NI</strong>CAL <strong>REPORT</strong> on the SAN JOSÉ DE GRACIA PROJECTand RESOURCE ESTIMATESON THE TRES AMIGOS, SAN PABLO, LA U<strong>NI</strong>ON,LA PURISIMA ZONESNortheast Sinaloa, MEXICO(Longitude 107˚, 53’ W, Latitude 26˚, 9’ N)By:Jim Cuttle, B.Sc., P.Geo.86 Cloudburst RoadWhistler, B.C. CANADAandGary Giroux, MASc., P.EngGiroux Consultants Ltd.,1215 – 675 West Hastings Street,Vancouver, B.C. CANADAAugust 21, 2009

San José de Gracia – MEXICOSUMMARY 61. INTRODUCTION and SCOPE OF <strong>REPORT</strong> 102. SOURCES of INFORMATION 103. RELIANCE on OTHER EXPERTS 114. PROPERTY LOCATION, ACCESS, TOPOGRAPHY and CLIMATE 115. LOCAL RESOURCES and INFRASTRUCTURE 136. PROPERTY AGREEMENT with DYNARESOURCE de MEXICO 147. PROPERTY CLAIM DESCRIPTION 158. HISTORY 169. GEOLOGY 189.1. Regional Geology 189.2. Local Rock Types at San José de Gracia 18Page10. DEPOSIT MODELS 2011. LOCAL GEOLOGY, MINERALIZATION, ALTERATION and STRUCTURE 2012. HISTORICAL EXPLORATION and PROPERTY DRILLING 2413. SAMPLING METHOD, ANALYSIS and QUALITY CONTROL 2614. FIELD VISIT and DATA VERIFICATION 2815. ADJACENT PROPERTIES 2916. MINERAL PROCESSING and METALLURGICAL TESTING 3017. SAN PABLO AREA 3217.1. History of Activity 3217.2. Current Drilling at San Pablo 3317.3 Proposed drilling at Tres Amigos 362 | P a g e

San José de Gracia Project - MEXICOFig# List of Figures after page1: Region Property Location – Mexico 122: Regional Claim Map 153: Detail Claim map – Close-up 154: Regional Geology 185: Local San José de Gracia Geology 186 Geological Legend – San José de Gracia area 197: Epithermal Deposit Model 208: Structural Interpretation – San José de Gracia 239: Drill hole Locations, 1992 – 2008 2410: San Pablo – Drill collar Plan 3611: San Pablo – Inclined Long Section 3612: Tres Amigos – Drill collar Plan 3813 Isometric view looking northeast, with four zones and drill trace 4414 Isometric view looking northeast, with surface topography 4515: San José de Gracia – Overall plan view of Block Model - gold 4516: Tres Amigos – Plan view of Block Model - gold 5217: San Pablo – Plan view of Block Model - gold 5218: La Union – Plan view of Block Model - gold 5219: La Purisima – Plan view of Block Model - gold 5220: Local drill targets - Follow-up 5321: Gold in Stream Sediments 5322: Gold in Rock Chips 5323: Regional Property Targets 53Table # List of Tables page1: List of current Land Concessions – San José de Gracia – 2009 152: Historic Gold Production – San José de Gracia – pre 1970’s 173: Type and Spatial Distribution of Alteration 214: Target Type and Characteristics of the Main Mineralized Trends 225: Selected Drill Intercepts – 1992 through 2008 246: Field Check Assays by Author, May 2009 287: Summary of Various Mines Located in San José de Gracia District 298: Recent Production – San Pablo Vein 309: All drill hole collars – San Pablo Area 3410: Selected composites for San Pablo 3511: Proposed drilling at San Pablo 3612: All drill hole collars – Tres Amigos 3813: Selected composites for Tres Amigos 3914: All drill hole collars – La Purisima Trend 4015: Selected composites from La Purisma Trend 4116: All drill hole collars – La Union Area 4217: Selected composites from La Union Area <strong>43</strong>18: Sample statistics sorted by vein 4519: Capping strategy for veins 4620 Capped sample statistics sorted by vein 4621: Composite statistics sorted by vein 474 | P a g e

San José de Gracia Project - MEXICOTable # List of Tables cont’ page22 Summary of semivariogram parameters 4823 Summary of specific gravity determinations 4924 Kriging parameters for gold in vein systems 5025 San José de Gracia Veins – Inferred Resource 5126 Tres Amigos Vein – Inferred Resource 5127 San Pablo Vein – Inferred Resource 5228 La Union Area – Inferred Resource 5229 La Purisima Trend – Inferred Resource 5230 Cost Estimate 58Photo # Photographs page1: San José de Gracia, from the air – 2009 132: San José de Gracia – Late 1890’s 163: La Purisima – Late 1890’s 164: San José de Gracia – Early 1900’s 175: San Pablo, towards ‘Gossan Cap’ from the air 326: Tres Amigos, Level 1 Adit 37Appendix ISan Pablo – Drill Plans and SectionsAppendix IITres Amigos – Drill Plans and SectionsAppendix III Standard Inserts for QA/QC, 2007 - 2008Appendix IV San Pablo / Tres Amigos – drill core pulp checks – ALS Chemex 2009Appendix V Check assays, chip samples and drill core - J. Cuttle 2009Appendix VI Drill Collar Locations at San José de Gracia - Giroux, 2009Appendix VII List of assay composites from all drilling at San José de Gracia5 | P a g e

San José de Gracia Project - MEXICOSUMMARYThe San José de Gracia Gold Property is located at Latitude 26 ˚, 9’ N, Longitude 107˚, 53’ W,in the northeast portion of Sinaloa State, Mexi co, approximately 120 kilometres eastnortheast of the coastal city of Los Mochis. The mineral claim block covers an area of99,141 hectares (244,982 acres) and is 100% owned by DynaResource de Mexico, S.A.de C.V. (or “DynaMexico”) which, at thedate of this report, is 75% owned byDynaResource Inc. (or “DynaUSA”), a Delaware company, and 25% owned byGoldgroup Resources Inc. (“Goldgroup), a British Columbia corporation.Underthe terms of an “Earn-In/Option Agreement between DynaMexico, DynaUS A, andGoldgroup, dated September 1, 2006; Goldgroup may acquire up to 50% equityinterest in the form of common shares of DynaMexico, in four phases, betweenSeptember 2006 and March 2011, for total deposits into a segregated DynaMexico bankaccount of US$18,000,000. Expenditures related to the exploration and maintenance of theProperty are made from the segregated account and pre-approved by a managementcommittee comprised of two Goldgroup appointees and one DynaUSA appointee.Jim Cuttle was asked to meet Mr Keith Piggott, President and CEO of Goldgroup, andDirector of DynaMexico, in Vancouver, May 7, 2009, and travel to the property May 21,2009 through May 24, 2009 and subsequently prepare this Technical Report. The focus ofthe report represents an independent review of recent exploration activities on the San Joséde Gracia property, with the main objective of identifying and qualifying a mineral resource atthe Tres Amigos, San Pablo, La Union and La Purisima areas. This report has beenprepared by Mr Jim Cuttle and Mr Gary Giroux to meet the standards required forNational Instrument <strong>43</strong>-<strong>101</strong>. The authors have given their approval to use this document inorder to support and maintain public financings.Regionally, the San José de Gracia Property is situated on the western portion of the SierraMadre Occidental (SMO) geological province, a linear belt of volcanic rocks approximately1500 kilometres long by 250 kilometres wide proven to host many important andeconomic epithermal gold and silver veins in western Mexico. The SMO rests onCarboniferous sediments that are unconformably overlain by two principle Tertiary andCretaceous volcanic units referred to as the Upper and Lower Volcanic Groups respectively.6 | P a g e

San José de Gracia Project - MEXICOLocally at San José de Gracia, precious metal gold and minor silver mineralization occurswithin vein and breccia structures found in the Lower Volcanic Group and to a lesserextent the underlying Carboniferous sediments. The gold rich structures are numerous,occurring along six basic trends with veins that pinch and swell intermittently over adistance of four kilometres. They exist in re-activated structures that parallel mainnorthwest and secondary northeast extensional and normal faults related to the “GreteGraben”. The principal veins strike northeast and dip northwest and include the La Parilla,Veta Tierra, La Union, San Pablo and Tres Amigos mines. The secondary veins strike southand southeast with moderate dips to the southwest and include areas like Orange Tree, PalosChinos and La Purisima mines. The intersection of these two vein orientations commonlyoccurs at most prospects, where it acts as an ideal location for the deposition of goldmineralization. Ore shoots commonly plunge to the southwest however their regularity alongthe structures is not yet defined. In contrast, La Prieta Mine is a unique occurrence where goldsits in the deeper Carboniferous sediments just below the Lower Volcanic unconformity.The gold veins here occur as flat lying ‘ladder veins’ between sub parallel northeasttrending fault systems.Although considered historic estimates only and may not to be reliable,, the propertyhas experienced significant mining activity particularly during 1890 to 1910 whenapproximately 1,000,000 ounces of gold were mined and produced, mostly from LaPurisima (471,000 ounces) and La Prieta (215,000 ounces) areas. Ore grades commonlyvaried from 20 g/t gold to over 66 g/t gold. Mining did not resume immediately after theMexican Revolution in 1910 and it was not until the 1970’s when the first road to San Joséde Gracia was opened. This allowed Compaňia Rosarito to begin producing gold from thePalos Chinos, San Pablo, Tres Amigos and La Union mines from 1978 to 1994. In 1996,Golden Hemlock acquired a controlling interest in the property through Minera Finisterre , S.Ade C.V. and later carried out a 63-hole diamond drill program. DynaMexico was formed byDynaUSA in 2000 to acquire and consolidate ownership of San Jose de Gracia. By the end of2003 DynaMexico had completed the acquisition of 100% of San Jose de Gra cia. In 2003DynaMexico began small scale underground mining at San Pablo until operations weresuspended in 2006, producing an estimated 18,250 ounces of gold from 42,000 tonnes ofmaterial over a 3½ year span.7 | P a g e

San José de Gracia Project - MEXICO1. INTRODUCTION and SCOPE of <strong>REPORT</strong>This technical report presents an independent review and estimation of a precious metalresource at the Tres Amigos, San Pablo, La Union and La Purisima areas on the San Joséde Gracia Project in Sinaloa State, Mexico. The report has been prepared by Jim Cuttle, P.Geo. (Qualified Person) and Gary Giroux of Giroux Consultants Ltd., at the request ofKeith Piggott, and DynaMexico. DynaMexico is a corporation duly organized in Mexico,with accounting and legal offices in Mazatlan, Sinaloa, and field office in Guamuchil, Sinaloa.DynaUSA is a Delaware corporation with main offices in Irving, Texas. Goldgroup is aprivate British Columbia corporation with head offices in Vancouver, B.C. Canada and mainfield offices in Hermosillo, Mexico.The purpose of this technical report is to support the first time disclosure of mineral resource forthe San Jose de Gracia project on behalf of Goldgroup Resources. The report highlights anindependent resource estimate at four of the properties target areas at Tres Amigos, San Pablo,La Union and La Purisima, including a brief review of some of the more encouraging explorationtargets on the San José de Gracia property.The results of this report are considered compliant with National Instrument <strong>43</strong> -<strong>101</strong> andthe December 11, 2005 Canadian Institute of Mining, Metallurgy and Petroleum (CIM)standards and definitions. It may be used to support and maintain future publicfinancings.2. SOURCES of INFORMATIONElectronic and hard copy data used for this report, including drill core assay certificates,collar location, and recent geological interpretations was obtained from internal reportson activities at San José de Gracia site, Sullivan and MacFarlane, various geological reportsfrom the Mexican Government, and general information known to the author. Local propertymaps and figures use UTM Nad 27 (Zone 13) projection or Nad 27 (Mexico) Longitude /Latitude where the scale dictates and were generated by the author where otherwiseindicated.A site visit to the San José de Gracia Project area was completed May 21 to May 24, 2009 bythe author and Qualified Person, in the company of Keith Piggott, Omar Felix Saavedra , on-sitetechnical manager under contract to Mineras de DynaResource, SA de CV. (“Mineras”), theoperating entity at SJG under an exclusive operating agreement with DynaMexico, and JonathanCordery, an independent consultant engaged by DynaResource Operaciones, SA de CV.(“DynaOperaciones”), the personnel contracting entity at SJG under operating agreementwith Mineras.10 | P a g e

San José de Gracia Project - MEXICOWhile on site, the author visited San José de Gracia’s core logging and storage facilities, thegeology offices, the mill, as well as several historic mining sites including Tres Amigos, SanPablo, La Prieta, La Union, Gossan Cap and many of the recent drill pads from the 2007-2008 drill campaign. A total of five rock samples were collected by the author includingthree rock samples of quartered core from drill holes at Tres Amigos and San Pablo and twochip samples from underground workings at the same locations. Ten historic drill holes wereselected from San Pablo and Tres Amigos and corresponding pulps from 350 mineralizedsections were sent for assay checks at Chemex Labs, Vancouver.A majority of the photographs were collected by the author, obtained from Dyna USA websites orsupplied by Dr José Vargas Lugo, operations manager for the San Jose de Gracia Project,under contract to DynaOperaciones.In preparing this report, the author has been able to rely on the open and enthusiastic assistanceof Keith Piggott, Omar Felix Saavedra, Dr. Vargas Lugo, and DynaMexico. The report is basedon information believed to be accurate at the time of completion.Title to the San José de Gracia property is described under a Legal Opinion; “The Legal Opinion ,San Jose de Gracia Property; SJG District; Mexican Subsidiaries; Mine and Mill Assets, Rights,Permits”; dated July 13, 2006; written by Abraham Urias Romero, Urias Romero Y Associados,Mazatlan, Sinaloa; but the Title Opinion was not verified by the Author.Land Access and Surface rights to the SJG property is described in a “Land OccupationAgreement” between the El Ejido Santa Maria and DynaMexico; dated May 12, 2002 andcovering a period of thirty years. The Land Occupation Agreement was not verified by theAuthor. In addition, the Earn In / Option Agreement between DynaMexico, DynaUSA , andGoldgroup was not verified by the author.3. RELIANCE on OTHER EXPERTSJim Cuttle is responsible for all parts of this Technical Report, excluding Section 20 on“Mineral Resource Estimate, Tres Amigos, San Pablo, La Union, La Purisima” which wascompleted by Gary Giroux of Giroux Consultants Ltd., Vancouver, BC, Canada.4. PROPERTY LOCATION, ACCESS, TOPOGRAPHY and CLIMATEThe San José de Gracia Gold Property is centered at Latitude 26˚, 9’ N, Longitude 107˚, 53’ W,in the northeast portion of Sinaloa State, Mexico approximately 120 kilometres eastnortheast of the coastal city of Los Mochis clearly straddling the Sinaloa -Chihuahua border(Fig 1.). The bulk of the historical mine workings within the current property boundary and11 | P a g e

San José de Gracia Project - MEXICOthe four areas of mineral resource (Tres Amigos, San Pablo, La Union and La Purisima) asdescribed in this report are located in the south-western portion of the claim block,approximately two to four kilometres northeast of the town of San José de Gracia (Figs 2 & 3).Access to the claim area is by hard cap road from Los Mochis to the small town of Sinaloa deLeyva then by gravel road to the village of San José de Gracia (population 250), roughly a fivehours trip. A gravel airstrip nearby the town of San José de Gracia is suitable for light aircraft.Air charters are available at the airport in Los Mochis.The topography is generally rugged with elevations varying from 400 meters in the valleybottoms to over 1600 meters in the higher Sierra. A network of small roads and trackswinds their way around areas nearer the old workings at San José de Gracia howeveraccess to the remainder of the large property is not easy without the use horse orhelicopter.The climate is semi-tropical with a rainy season dominating from late June throughOctober. Summer temperatures vary up to 40 ˚C with high humidity while the wintertemperatures are cooler with night-time lows of 5˚C. Rains in the wet season can rangefrom gentle late afternoon/early evening showers to strong rains, which can last up to afew days. Precipitation averages 550 mm annually.Fig.1Region Property Location12 | P a g e

San José de Gracia Project - MEXICO5. LOCAL RESOURCES and INFRASTRUCTURELocal resources and infrastructure are derived from Sullivan and MacFarlane;“The village of San José de Gracia (population 250) in the south-western corner of the landpackage provided much of the labour for the operation, which had approximately 75 employees,however, has very limited services. There is no grid electricity supply or running water andthe few stores offer minimal goods. The Project produces its own diesel-generated power forthe mine site and mill and has developed a water supply. The mine site area hasaccommodation facilities for about 50 persons.“DynaMexico maintains an administrative and logistics office in Guamuchil and theproject sources many of its supplies there, in Los Mochis and in Culliacan. Although there is asatellite dish installed at the site, communications from the site to Guamuchil relies on aradio link using a repeater station in the Sierra Madre foothills.”During the property visit in May, 2009 by the author, the San José de Gracia project hosted acamp staff of 10-15 people, including geologists, local field helpers, consultants, securityand cooks and cleaners. Most of these employees come from outside of the community.Photo 1. San José de Gracia, from the air - 200913 | P a g e

San José de Gracia Project - MEXICO6. PROPERTY AGREEMENT with DYNARESOURCE de MEXICOA description of the general terms of the agreement between DynaResource de Mexico, S.Ade C.V, the owner of the property, and its parents DynaResource Inc (USA) Ltd, andGoldgroup Resources Inc.“Goldgroup may acquire up to 50% Equity interest in DynaMexico in the form of commonshares, in four phases, between September 2006 and March 2011, for deposits toDynaMexico aggregating US$18,000,000.I. On or before June 15, 2007, US$ 1,000,000 (Completed)II. At Goldgroup’s option, on or before March 15, 2008 an additionalUS$2,000,000 for which it will earn an initial 15% of DynaMexico(Completed)III.At Goldgroup’s option, on or before September 15, 2008 an additionalUS$3,000,000 for which it will earn an additional 10% (cumulative 25%) ofDynaMexico (Completed)IV. At Goldgroup’s option, on or before March 15, 2011, an additionalUS$12,000,000 for which it will earn an additional 25% (cumulative 50%) ofDynaMexico. (approximately 25 % completed at June 30, 2009)The $18,000,000 is to be expended to fund the exploration and dev elopment ofthe San Jose de Gracia project;Funds are to be deposited by Goldgroup into a segregated DynaMexico bankaccount in Mexico;A management committee of DynaMexico will pre-approve expenditures from thesegregated account; andGoldgroup is entitled to appoint a majority of the management committee’smembers.Mineras de DynaResource has been named the exclusive operating entity at SJG byway of an operating agreement with DynaMexico;As of the end of June, 2009, and since the date of the Earn In / Option Agreement, Goldgrouphad deposited $ 8,968,000 USD to the segregated account of DynaMexico; and DynaMexicohad expended approximately $ 8,<strong>43</strong>0,085USD in SJG related expenses.14 | P a g e

San José de Gracia Project - MEXICO7. PROPERTY CLAIM DESCRIPTIONThe San José de Gracia property consist s of 34 contiguous mineral concessions located onmap sheet G13-A81 in the Culliacan mining district of Sinaloa State, Mexico. The claimscover an area approximately 99,141 hectares in size. Title is held by DynaMexico . Title isconfirmed by a title opinion which the author has not verified.The author is not aware of any environmental liabilities related to the San Jos é de Graciaproperty.Table 1. Current Land Concessions – San José de Gracia – 2009Claim NameClaimNumberStaking date Expiry Hectares Taxes / ha (pesos)AMPL.SAN <strong>NI</strong>COLAS 183815 22/11/1988 21/11/2038 17.4234 111.27AMPL.SANTAROSA 163592 30/10/1978 29/10/2028 25.0000 111.27BUENA VISTA 211087 31/03/2000 30/03/2050 17.9829 63.22ELCASTILLO 214519 02/10/2001 01/10/2051 100.0000 31.62EL REAL 212571 07/11/2000 06/11/2050 2037.9479 63.22EL REAL 2 216301 30/04/2002 29/04/2052 280.1555 31.62FI<strong>NI</strong>STERRE FRACC.A 219001 28/01/2003 27/01/2053 18.7856 31.62FI<strong>NI</strong>STERRE FRACC. B 219002 28/01/2003 27/01/2053 174.2004 31.62GUADALUPE 189470 05/12/1990 04/12/2040 7.0000 111.27LAGRACIAI 215958 02/04/2002 01/04/2052 300.0000 31.62LAGRACIAII 215959 02/04/2002 01/04/2052 230.0000 31.62LALIBERTAD 172<strong>43</strong>3 15/12/1983 14/12/2033 97.0000 111.27LA NUEVA AURORA 215119 08/02/2002 07/02/2052 89.3021 31.62LA NUEVA ESPERANZA 226289 06/12/2005 05/12/2055 40.0000 7.6LAU<strong>NI</strong>ON 176214 26/08/1985 25/08/2035 4.1098 111.27LOSTRES AMIGOS 172216 27/10/1983 26/10/2033 23.0000 111.27MINA GRANDE 163578 10/10/1978 09/10/2028 6.6588 111.27NUEVO ROSARIO 184999 13/12/1989 12/12/2039 32.8781 111.27PIEDRA DE LUMBRE2 215556 05/03/2002 04/03/2052 34.8493 31.62PIEDRA DE LUMBRE 3 218992 28/01/2003 27/01/2053 4.3098 31.62PIEDRAD E LUMBRE No.4 212349 29/09/2000 28/09/2050 0.2034 63.22PIEDRA DE LUMBRE UNO 215555 05/03/2002 04/03/2052 40.2754 31.62SAN ANDRES 2121<strong>43</strong> 31/08/2000 30/08/2050 385.0990 63.22SAN JOSÉ 208537 24/11/1998 23/11/2048 27.0000 111.27SAN MIGUEL 183504 26/10/1988 25/10/2038 7.0000 111.27SAN <strong>NI</strong>COLAS 163913 14/12/1978 13/12/2028 55.5490 111.27SAN SEBASTIAN 184473 08/11/1989 07/11/2039 40.0000 111.27SANT AMARIA 218769 17/01/2003 16/01/2053 4.2030 31.62SANTA ROSA 170557 13/05/1982 12/05/2032 31.4887 111.27SANTO TOMAS 187348 13/08/1986 12/08/2036 312.0000 111.27TRES AMIGOS 2 212142 31/08/2000 30/08/2050 54.4672 63.22FI<strong>NI</strong>STERRE 4 231166 18/01/2008 17/01/2058 2142.1302 5.08PEPE ROCIO 2307<strong>43</strong> 05/10/2007 04/10/2057 30020.0000 5.08FRANCISCO ARTURO 230494 06/09/2007 27/03/2057 62481.3815 5.08TOTAL 99141.4010Source - DynaMexico records ($1 Can = 14.60 Pesos, May 25, 2009)Surface rights access has been granted to DynaMexico by the “El Ejido Santa Maria” in aLand Occupation Agreement dated May 12, 2002 and covering a 30 year period. This LandOccupation Agreement has not been verified by the author.The author is not aware if permits have been obtained for the proposed work in this report.15 | P a g e

San José de Gracia Project - MEXICO8. HISTORYMuch of the exploration and mining activity dates back to as early as 1828 when goldmineralization at San José de Gracia was first discovered by Spanish explorers. During thenext eighty years over sixty gold occurrences were uncovered, of particular importance werethe La Purisima and La Prieta vein structures that were recorded to host high grade goldup to 3.4 ounces per tonne. The peak period of production from the San José de Gracia campoccurred in 1890 to 1910 with an estimated 1 million ounces of gold produced from thePhoto 2. San José de Gracia – late 1890’sLa Purisma and La Prieta area.Other smaller mines t hatc o n t r i b uted t o t his productionwere Palos Chinos, San Pablo, TresAmigos, La Ceceña, La Union, LaParilla, Ve ta T ierra , SantaR o sa, Eduwiges and Los Hilos Mines.Mining did not resume immediatelyafter the Mexican Revolution in1910 due to several logisticalproblems. It was not until the 1970’swhen mining could resume at SanJose de Gracia, when the first road toSan José de Gracia was opened, allowing Compaňia Rosarito to begin producing gold fromthe Palos Chinos, San Pablo, Tres Amigos and La Union mines from 1978 to 1994. Severalother mining companies such as Asarco and Peñoles had tried in vain to consolidate thetightly held mining concessions. In 1996, Golden Hemlock acquired a controlling interest in theproperty through Minera Finisterre,Photo 3. La Purisma Mine – late 1890’sSA de CV, and later carried out asubstantial drill program.16 | P a g e

San José de Gracia Project - MEXICODynaMexico was formed by DynaUSA in 2000 to acquire and consolidate ownership of SanJose de Gracia. By the end of 2003 DynaMexico had completed the acquisition of 100% ofSan Jose de Gracia. In 2003 DynaMexico began small scale underground mining at SanPablo until operations were suspended in 2006, producing 18,250 ounces of gold from42,000 tonnes of material over 3 ½ year span. Goldgroup is currently earning a 50% equityinterest in DynaMexico, through the acquisition of common shares. At the date of thisreport, DynaMexico is owned 75 % by DynaUSA, and 25 % by Gol dgroup.The following table outlines potential historic gold production from the San José deGracia area. These are historic estimates only and should not be considered reliable.Table 2. Historic Gold Production – San José de Gracia – pre 1970’sAreaGoldProduction(oz)GoldGrade(g/t)MinedWidth(m)Purisima Ridge trend (includes the Anglo,Rosario, Jesus Maria & La Cruz Mines)471,000 67.0 UnknownLa Prieta trend (La Prieta Mine) 215,000 28.0 1.5-3mOther areas 300,000 Unknown unknownPhoto 4. San José de Gracia - early 1900's17 | P a g e

San José de Gracia Project - MEXICO9. GEOLOGY9.1 Regional Geology Regionally the San José de Gracia Property is situated on thewestern portion of the Sierra Madre Occidental (SMO) geological province, a linear belt ofvolcanic rocks approximately 1500 kilometres long by 250 kilometres wide that hasproven to host many important and economic epithermal gold and silver veins in westernMexico. The SMO rests on highly deformed Carboniferous sediments that are overlainunconformably by two principle Tertiary and Cretaceous volcanic units referred to as theUpper and Lower Volcanic Groups respectively. Both upper and lower packages areseparated by two lengthy periods of erosion and associated local felsic intrusive activity.Although not commonly seen elsewhere in the SMO, the basement Carboniferous rocks arehighly deformed metasediments and include shale, siltstone and conglomerates. TheCretaceous age Lower Volcanic Group (LVG) is dominated by andesitic to dacitic volcanicsincluding minor rhyolites which are intruded towards the end of their cycle by a suite ofquartz monzonite, granodiorite, porphyritic andesite and diorite. The Tertiary age UpperVolcanic Group (UVG) is characterized by basal conglomerates, ignimbrites, rhyolites, felsictuffs and minor andesites. The contact between the two volcanic packages is highlyprospective for precious metal vein style mineralization as a majority of epithermal gold -silver prospects and mines in the SMO occur just below or in some newer cases just abovethis unconformity interval.9.2 Local Rock Types at San José de Gracia ,Four principal and important rock unitsoutcrop on the San José de GraciaProperty and are described below, from oldest toyoungest. Specific descriptions of local geology at the four interest sites are further describedin Section 11Upper Paleozoic (Carboniferous) Sedimentary Rocks – These shales, sandstones,limestones and pebble conglomerates are highly deformed, folded and faulted marinesediments with lithological thicknesses believed to be greater than 800 meters. They arebest exposed along the eastern edges of the current project area.Cretaceous Lower Volcanic Group – This group of volcanic rocks is found extensivelythroughout western Mexico in the Sierra Madre Occidental and commonly host many ofMexico’s base and precious metal deposits. They can be roughly divided into a basalsequence of feldspar bearing rhyodacit e crystal tuffs and flows grading upwards to athicker sequence of andesite flows, tuffbreccias and related sills.Tertiary Upper Volcanic Group – Higher elevations of the San José de Gracia property,particularly along its western edges are underlain by r hyolitic ignimbrite and tuffs. Theseare resistant rock types that most likely acts as a cap to mineralization.Tertiary Intrusive rocks – Three types of intrusion have been mapped in the project area.They include 1.) Stocks and plugs quartz feldspar porphyry located near Tres Amigos and18 | P a g e

San José de Gracia Project - MEXICOare possibly coeval to the rhyodacite tuffs. 2.) Sill like diorite porphyry occurring in thebasement sediments or close to the overlying Lower Volcanic Group. 3 .) Mafic Dykes thatcut all units and act as possible ‘fe eders’ to the Upper Volcanic Group Hornillos andNavachiste Formations (CRM, 1992).Fig. 6 Geological Legend (modified from San José de Gracia G13 -A81, 2008)19 | P a g e

San José de Gracia Project - MEXICO10. DEPOSITS MODELSPrevious studies suggest that the gold mineralization at San José de Gracia can be groupedinto the ‘low sulphidation’ epithermal model of precious metal ore deposits. Thesedeposits are found worldwide and have been formed commonly during the Cretaceous tomodern times. They occur as veins, breccias and disseminations of precious metalmineralization deposited by the circulation of neutral to weakly acid hydrothermal fluidsalong regional fault structures, fracture zones or along highly permeable lithologies such asvolcanic ignimbrite and agglomerate. Because the fluids are relati vely neutral, very littlealteration is evident and the veins and nearby wall rock may commonly include illite,sericite and adularia. Generally this style of mineralization is found distally from a heatsource.Fig. 7 Epithermal Deposit Model(After Pressacco, 2009)Examples of these epithermal deposit types include the huge Kupol Mine in Russia, El Peñón inChile, Pajingo in Australia, Tayoltita in Mexico among many others.11. LOCAL GEOLOGY, MINERALIZATION, ALTERATION and STRUCTURE – San José deGraciaSullivan and MacFarlane best describe and summarize the ‘local’ geological features observedat the San José de Gracia Gold Project:20 | P a g e

San José de Gracia Project - MEXICO“gold mineralization at San José de Gracia is hosted within andesite and rhyodacite of theLVG and underlying Palaeozoic sediments as fa ult breccia veins and crackle breccias thatexhibit multiple stages of reactivation and fluid flow, as evidenced by crustiform/colloformtextures and cross cutting veins. Locally, veins exhibit sharp, clay gouge hanging wall andfootwall contacts with slickensides, indicating reactivation of structurally -hosted veinssubsequent to mineralization. Gold grades can also be carried within the mineralized haloadjacent to the principal veins as quartz -chlorite stock work and it is this type ofmineralization that may hold the greatest potential on the property. In addition to vein -hosted mineralization, broad zones of un-mineralized clay alteration, developed southwestof the main mineralized trends, may overlie lower -grade, disseminated gold mineralizationat depth.”“Alteration at San José de Gracia is laterally and vertically zoned from discrete zones ofsilicification to broad zones of illite to clay alteration with increasing elevation and/ordistance from the main feeder structures. Faulting and tilting of the mineralization systemhas affected the surface distribution of alteration and in general has exposed deeperportions of the system in the northeast and exposed shallower, more distal portions of thehydrothermal system in the southwest part of the prop erty.”Table 3. Type and Spatial Distribution of AlterationType Mineralogy Description DistributionSilicificationqtz,py,±ksp,ill- pervasive - structurally controlled,forming envelopes to veins- pervasive zones developed atdeeper levels of the veinIlliteill,qtz,py- broad zones of alteration adjacent toveins- intermediate levelsMixed Clay ka+ill+py±qtz - broad zones of pervasive alteration- adjacent to the upper parts ofvein systemsPropyliticchl,ill,py,±ep,qtz,cc- broad zones of alteration decreasing inintensity outwards- outboard of zones of silicificationand illite alterationChloritestockworkchl,py,±qtz- structurally controlled zones of stockworkveinlets overprinting illite and silicification- developed in the footwall andhanging wall of veins atintermediate to deep levels.After Sullivan and MacFarlane, 2006“Six principal mineralized trends over an approximate north -south strike length of 4 kmand surface area of 12 square kilometres have been identified at Sa n José de Gracia. Fromsouth to north these consist of: 1.) Purisima Ridge trend; 2.) Palos Chinos trend; 3.) LaParilla to Veta Tierra trend; 4.) San Pablo trend (recent production); 5.) La Prieta trend; and6.) Los Hilos to Tres Amigos trend.”21 | P a g e

San José de Gracia Project - MEXICOTable 4. Target Type and Characteristics of the Main Mineralized TrendsTrend Target Type & Characteristics Historical Results & Past ProductionLa Purisima(Anglo, Rosario & La CruzMines)Palos Chinos(Palos Chinos & Tajo VerdeMines)- High-grade gold veins, mining interruptedwith the onset of the Mexican Revolution in1910;- Three main ore zones developed withindilational jogs and at veinintersections.- High-grade S striking, W dipping vein with SWplunging ore shoots defined by dilational jogsin vein Past production of approximately 471,000 oz gold atanaverage grade of 66.7 g Au/t;One Dyna surface chipsample between La Purisima and Palos Chinosreturned 52 g Au/t over 0.6 m. Old workings 270 m along strike & 70 m down dip;Vein average: 12.7 g Au/t over 1.3 m, with grades up to92.5 g Au/t over 0.7 m; Transect from Palos Chinos vein through stockworkmineralization to subparallel hanging wall vein grades7.4 g Au/t over 7.6 m, including 13.4 g Au/t over 3.4 mLaParillato VetaTierra(Veta Tierra, Sta.Eduwiges, La Union, LaMochemara & La ParillaMines)San Pablo(San Pablo Mine)La Prieta(La Prieta Mine)Los Hilosto TresAmigos(Tres Amigos, West TresAmigos, La Ceceña,Tepehauje, Los Hilos + Sta.Rosa Mines)-5 SW striking, W dipping high-grade goldveins in 150 m wide zone (600 m strikelength, open in both directions);- Zone cut by S striking, W dipping veins;- Located within a structural corridor whichmay link the La Purisima and La Prieta trends- Two subparallel veins, mineralized shootdefined by vein intersections;- Stockwork mineralization in footwall pointsto bulk mineable potential- High-grade (>30 g Au/t based on pastproduction) - Flat zone, which may have formedbetween parallel SW striking veins- SW striking, W dipping high-grade vein withminimum 1.4 km strike length;- Variation in vein chemistry along the strikeextent, from sulphide-rich at Tres Amigosto low-sulphide, carbonate-rich vein withbonanza grades around Los Hilos. Combined, the veins average 10.6 g Au/t over 0.86m; Santa Eduwiges underground averages 20 g Au/tover 0.7 m; La Union West underground averages 17.7 g Au/tover 1.6 m; Multi-gram gold values in float at SW & NE ends ofsurface exposures; 32.9 g Au/t over 1.3 m from SW-S vein intersection. Quartz-rich, sub-vertical vein averages 28.3 g Au/tover 0.85 m, with grades of up to 91.7 g Au/t over 0.6m in main vein; Stockwork mineralization in footwallcross cut yielded 8.7 g Au/t over 10 m; Recent Production of 18,250 Oz Au from 42,000tons Mined; at Aver. Grade of 20 g/t; with ProductionCosts of approx. $ 175 / Oz. in small scale; Past production of approximately 215,000 oz gold atanaverage grade of 27.6 g/t; Preliminary mapping &sampling yields gold values up to 48.84 g/t. Small mines (Tres Amigos, La Ceceña, Los Hilos +Sta. Rosa) developed intermittently along the traceof the vein, mining often halted at the intersection of Wor NW trending faults with right lateral offset; Los Hilos to La Ceceña area: surface work traced a lowsulphide vein with up to 104 g Au/t gold; Vein average at Tres Amigos (based on 1997drilling) of 5.9 g Au/t over 2.6 m. Significance of crossstructure (Orange Tree trend: 23 g Au/t over 1.6 m inDDH & 210 g/t at surface) not fully evaluated.Modified after Sullivan and MacFarlane, 200622 | P a g e

San José de Gracia Project - MEXICO“The geological model that is emerging for gold mineralization at San José de Gracia is onein which precious metal bearing low sulphidation fluids exploited steeply to locallymoderately dipping northwest to northeast trending fa ults over a strike length of at least1.5 km. Although mineralization may have followed pre existing structures, the presence ofbreccia zones sugges ts that deformation was at least in part synchronous withmineralization. Underground mapping sugg ests a high potential for the presence of thick, highgradeore shoots formed within andFig. 8 Structural Interpretations at San José de Graciaa d j a c e n t t o t h e m a i n m i n e r a l i z e dstructures. These include: 1)Dilational jogs – Palos Chinos;2) Vein intersections – San Pablo3) Vein flattening (rolls) Amigos;and 4) Flat Zones - La Unionand La Prieta (La Prieta may behosted within a pre-existingthrust fault).”“Mineralized veins compriseprincipal south west andsecondary south striking faultbreccia veins that are cut bylate east- west and northweststriking brittle faults withnormal displacement.”“Gold- bearing siliceous fluidsformed tabular or sheet- like quartz, quartz -sulphide and quartz- calcite veins and brecciaveins which were subsequently cut by late brittle(?), normal (right lateral) faults, res ulting inthe small- scale (often

San José de Gracia Project - MEXICO12. HISTORICAL EXPLORATION and PROPERTY DRILLINGThe earliest exploration work documented in this report at San José de Gracia dates back to1992 and 1997 when Peñoles and Golden Hemlock completed limited drilling campaigns atTres Amigos, San Pablo, La Union and La Purisima areas. Previous geological work to thesedates is unknown to the authorDynamexico has been conducting exploration activities on the San José de Gracia propertysince late 2006. These activities have included geological mapping, geochemical streamsediment and rock chip sampling, and diamond drilling. Geochemical surveys comprisesystematic sampling of available outcrops and creeks and analyzing these samples for theirgold contents. To date the rock chip geochemical surveying has covered an area ofapproximately 5 kilometers (east-west) by 5.5 kilometers (north-south) with an approximategrid density of 100 meters by 100 meters. There are several areas containing anomalous goldvalues located in bedrock and creek drainages that, for the most part, correspond to areas thathave had historical mining activity but also include new anomalies yet to be investigated.Three drill campaigns have been completed in the vicinity of the old mines at San José deGracia. Peñoles drilled eleven short reverse circulation (RC) holes in 1992 targetingshallow mineralization and up-dip potential of previously identified ore bodies.Unfortunately results of this drill program are not well documented and are not reliable. In1997 and 2007 to 2008 both Golden Hemlock and DynaMexico drilled a total of 189 coreholes stretching over a horizontal distance of approximately three kilometres. Some ofthe better intercepts from these programs are tabled below:Table 5. Selected drill intercepts – 1992 through 2008Drill hole Area From m To m length (m) Au g/t Ag g/t Cu% Pb% Zn%97-002 Tres_Amigos 42.70 58.20 15.50 3.99 15.1 0.38 0.00 0.0097-006 Tres_Amigos 27.80 29.65 1.85 6.46 45.5 1.10 0.03 0.3297-007 Tres_Amigos 57.00 67.00 10.00 3.41 12.2 0.09 0.00 0.0097-009 Tres_Amigos 100.00 102.00 2.00 13.53 3.1 0.02 0.01 0.5097-012 Tres_Amigos 24.50 26.20 1.70 8.57 34.9 0.39 1.00 4.3097-013 Tres_Amigos 95.00 107.50 12.50 20.80 21.8 0.<strong>43</strong> 0.06 0.1597-035 Tres_Amigos 126.00 132.00 6.00 8.84 14.2 0.28 0.00 0.1397-037 Tres_Amigos 35.90 37.20 1.30 11.97 15.0 0.19 0.22 3.6097-039 Tres_Amigos 40.20 <strong>43</strong>.20 3.00 29.50 44.6 0.58 0.95 7.4597-040 Tres_Amigos 78.00 80.00 2.00 14.88 10.9 0.19 0.17 0.1097-040 Tres_Amigos 92.00 94.00 2.00 10.81 16.3 0.38 0.01 0.7897-040 Tres_Amigos 104.00 108.00 4.00 7.21 4.8 0.04 0.00 0.2597-045 Tres_Amigos 100.00 106.00 6.00 11.46 3.4 0.03 0.02 0.1797-047 Tres_Amigos 124.94 132.00 7.06 7.51 15.4 0.09 0.27 3.4208-102 Tres_Amigos 158.66 162.47 3.81 5.10 6.6 0.14 0.01 0.1908-113 Tres_Amigos 25.10 26.70 1.60 13.40 3.2 0.00 0.01 0.9008-115 Tres_Amigos 153.30 159.00 5.70 8.31 8.3 0.17 0.00 0.0708-116 Tres_Amigos 134.80 138.10 3.30 21.74 9.9 0.06 0.04 0.1508-118 Tres_Amigos 27.84 31.88 4.04 5.18 30.5 0.38 0.80 5.6808-118 Tres_Amigos 52.65 53.73 1.08 13.70 13.9 0.06 0.98 4.5324 | P a g e

1600NE1550NE1500NE1450NE1400NE1350NE1300NE1250NE1200NE1150NE1100NE1050NE1000NE1600NE1550NE1500NE1450NE1400NE1350NE1300NE1250NE1200NE1150NE1100NE1050NE1000NE2225NE2200NE2175NEHistorical MinePoint2150NE2125NE2100NE2075NE2050NE2025NE2000NEVein StructuresLine2225NE2200NE2175NE2150NE2125NE2100NE2075NE2050NE2025NEHistorical Drilling(San José de Gracia)DynaMexico (2007 - 08, 126 holes)Hemlock (1997 - 63 holes)Penoles (1992, 11 RC holes)2000NE00.25kilometres0.5

San José de Gracia Project - MEXICODrill hole Area From m To m Length m Au g/t Ag g/t Cu% Pb% Zn%97-048 La_Ceceña 61.00 64.02 3.02 2.55 7.5 0.02 0.87 4.8097-050 La_Ceceña 78.00 80.00 2.00 8.53 10.8 0.05 0.78 2.0008-054 La_Ceceña 155.80 158.00 2.20 2.64 10.1 0.29 0.02 0.2708-104 La_Ceceña 67.45 68.80 1.35 26.20 327.9 1.60 0.23 0.0107-007 San_Pablo 85.50 87.50 2.00 24.55 45.0 0.49 0.03 0.0707-008 San_Pablo 115.80 118.10 2.30 7.60 18.9 0.02 0.01 0.0007-009 San_Pablo 167.40 170.55 3.15 8.24 2.0 0.00 0.00 0.0107-012 San_Pablo 19.70 23.90 4.20 10.45 10.0 0.15 0.00 0.0107-023 San_Pablo 69.10 70.50 1.40 9.16 24.5 0.63 0.03 0.0407-026 San_Pablo 65.90 67.80 1.90 34.00 18.7 0.21 0.01 0.0507-027 San_Pablo 142.80 148.85 6.05 13.72 28.6 1.06 0.02 0.0407-029 San_Pablo 130.60 132.30 1.70 23.86 <strong>43</strong>.0 0.94 0.00 0.0107-031 San_Pablo 94.25 98.05 3.80 31.32 69.6 1.01 0.23 0.7408-048 San_Pablo 219.46 228.66 9.20 4.39 7.5 0.28 0.00 0.0108-051 San_Pablo 183.55 192.60 9.05 22.95 13.6 0.40 0.00 0.0308-060 San_Pablo 235.70 238.60 2.90 13.88 12.5 0.58 0.00 0.0108-089 San_Pablo 173.80 175.10 1.30 4.11 35.6 1.00 0.01 0.0108-090 San_Pablo 190.70 191.90 1.20 11.55 48.5 1.00 0.02 0.0208-092 San_Pablo 124.80 125.80 1.00 23.31 0.5 0.00 0.01 0.0008-097 San_Pablo 227.69 229.75 2.06 17.04 20.0 0.56 0.03 0.0492-001 La_Union 46.00 60.96 14.96 2.5897-027 La_Union 20.30 21.30 1.00 6.14 12.5 0.05 0.24 0.0497-029 La_Union 38.10 41.20 3.10 3.63 8.6 0.11 0.02 0.0697-030 La_Union 75.00 78.10 3.10 4.62 9.1 0.50 0.00 0.0197-031 La_Union 87.00 91.00 4.00 2.84 6.7 0.34 0.00 0.0197-034 La_Union 45.70 47.70 2.00 8.87 4.1 0.14 0.00 0.0108-061 La_Union 27.80 31.30 3.50 2.01 24.8 0.45 0.22 0.1508-076 La_Union 32.75 34.85 2.10 36.09 47.8 0.<strong>43</strong> 0.80 1.0608-080 La_Union 125.30 128.40 3.10 4.82 4.4 0.11 0.00 0.0197-055 La_Purisima 24.40 27.40 3.00 5.24 28.5 0.63 0.35 1.8397-063 La_Purisima 54.50 61.50 7.00 3.13 4.0 0.07 0.02 0.0097-063 La_Purisima 67.30 70.00 2.70 8.45 11.1 0.68 0.00 0.0007-016 La_Purisima 32.45 34.60 2.15 5.20 4.2 0.22 0.00 0.0107-021 La_Purisima 158.70 160.80 2.10 75.90 76.0 1.61 0.07 0.0007-036 La_Purisima 91.40 92.82 1.42 4.47 2.6 0.01 0.01 0.0607-037 La_Purisima 251.30 253.50 2.20 4.88 23.0 0.01 0.01 0.0007-039 La_Purisima 197.55 200.80 3.25 10.93 4.6 0.04 0.00 0.0107-042 La_Purisima 16.10 18.30 2.20 3.02 2.0 0.01 0.01 0.0508-068 La_Purisima 135.40 137.00 1.60 18.16 8.3 0.04 0.03 0.2208-070 La_Purisima 120.50 121.60 1.10 9.50 2.7 0.01 0.00 0.0608-082 La_Purisima 151.60 153.30 1.70 18.16 0.1 0.00 0.00 0.04(intervals calculated with a 2 g/t Au cut,5 meter barren and 0.1 meter minimum sample length. True width not calculated)25 | P a g e

San José de Gracia Project - MEXICO13. SAMPLING METHOD, ANALYSIS AND QUALITY ASSURANCE / QUALITY CONTROLThree basic periods of core drilling and reverse circulation sample collection have takenplace in recent years at San José de Gracia. In 1992, Peñoles drilled 11 short reversecirculation (RC) holes at various locations near San Pablo and La Union areas.Unfortunately this data was not well kept and th e quality of the assays is questionable.During Golden Hemlock’s 1997 drill program no information is available on what QualityAssurance and Quality Control (QA/QC) measures were in place during their drilling andconsequently the 2<strong>43</strong>1 drill core assays f rom 63 drill holes cannot verify the calibre oflaboratory quality control.However, the larger drill program completed in 2007 and 2008 incorporated a program ofQA/QC for all of the 14713 samples taken from 118 of the 126 diamond drill holes (holes07-09 to 08-126). Project geologists first logged and marked the core at storage facilities inSan José de Gracia, while technicians later split the individual core lengths with adiamond saw, placed half the core in a plastic bag, numbered the bags for the laboratoryand then closed them with security clips. The half core samples were then trucked toHermosillo, Mexico where Sonora Sample Preparation SA de CV (SSP) crushe d each sampleto -150 mesh. The rejects remained with SSP while the pulps were air couriered toInternational Plasma Labs Ltd. (IPL) of Vancouver, Canada or Inspectorate Labs of Reno,Nevada and analyzed for gold by fire assay with Atomic Absorption (AA) finish. Samplesover 10 gram per tonne gold were re-run using fire assay with gravity finish. In addition, a30 element Inductively Coupled Plasma (ICP) analysis (aqua regia digest) was conducted onall samples. The remaining half of the core is stored on site at the Company’s camp in SanJosé de Gracia.As far as a Quality Assurance / Quality Control, DynaMexico, utilizing technicalpersonnel contributed by Goldgroup and contracted by Mineras, one of either theregular blanks, duplicates or one of the three different ‘reference’ standards wereinserted into each lab shipment roughly every 20 samples. These standards werepurchased commercially from Rocklabs Ltd., of Auckland, New Zealand.Control charts show most of the assay data on the three different standards to be withintwo standard deviation of the norm however re-assay of the selected batches with standardswell above and below two standard deviation is recommended. These sample batches arelisted on the spreadsheet in Appendix IIIStandard SP-37, 7.1% or 23 samples out of a base of 323 – above/ below 2SDStandard SG-31, 5.9% or 15 samples out of a base of 254 – above/ below 2SDStandard OxL-51, 6.8% or 18 samples out of a base of 262 – above/ below 2SD26 | P a g e

San José de Gracia Project - MEXICOAlthough most of the ‘blank’ inserts are within acceptable range, control charts with 417inserted blanks identify 3 outliers that require re -assay. These include sample 11592(24ppb Au), sample 14705 (30ppb Au) and sample 14724 (40ppb Au).The duplicate assaying program identifies 2 outlier samples from 226 duplicates thatrequire re-assay. When these two outliers are removed the program shows a high degree ofcorrelation with a 50 ppb constant variance. The two samples are #1373 (orig 297ppb Au,dup 102ppb Au) and #1900 (orig 320 ppb Au, dup 203 ppb Au).Charts and data on all five different inserts for the 2007 and 2008 drill campaigns arefound in Appendix III.Although concerns have been identified, the author believes sample preparation, secur ityand general analytical procedures have been adequate.Since the completion of this report the author understands that some if not all of the qualitycontrol issues during the 1997, 2007 and 2008 drill programs were addressed. New chartsare said to reflect improved standard deviation ranges for Standards SP-37, Sg-31 and OxL-51;. This additional information has not been substantiated by the author.27 | P a g e

San José de Gracia Project - MEXICO14. FIELD VISIT and DATA VERIFICATIONThe author travelled to and visited the San José de Gracia Project area from May 21 to May24, 2009, in the company of Keith Piggott, Omar Felix Saavedra and Jonathan Corde ry. Corelogging and storage facilities, the geology offices, the mill, as well as several historic miningsites including Tres Amigos, San Pablo, La Prieta, La Union, and Gossan Cap were viewed andphotographed. Many of the recent drill pads from the 2007-2008 drill campaign were clearlylocated and are identified by cement carne.A total of five rock samples were collected by the author includ ing three rock samples ofquartered core from drill holes at Tres Amigos and San Pablo and two chip samples fromunderground workings at the same locations. These rocks were hand delivered to AcmeLabs of Vancouver for analysis (Appendix V). Below is a lis t of the assay results from the fivesamples taken at Tres Amigos and San Pablo.The author suggests that the five check samples listed below support the fact that goldmineralization can be verified from five ‘point’ locations, in two areas namely Tres Amigosand San Pablo. No samples were taken to verify gold at La Union and La Purisima prospects.Table 6 Field check assays by author, May 2009Sample Location Chemex 2009 Original CommentsJC-01Tres Amigos1.67 g/t Au,random grabN/A 40 meters inside level 1JC-02San Pablo0.75 g/t Au110 meters into mainN/Arandom grablevel entranceJC-4477Hole 07-02 7, 145.10 to147.05 meters26.93 g/t Au 22.23 g/t Au Quartered coreJC-16045Hole 08-118, 27.84 to28.85 meters10.84 g/t Au 4.06 g/t Au Quartered coreJC-16047 Hole 08-118, 9.97 g/t Au 9.76 g/t Au Quartered coreThe project’s technical staff have kept a well maintained database of all its drill holecollars, deviation surveys, assays and geology information in both Microsoft Access andSurpac software formats. More recent improvements have involved re-checking surveysof drill collars, re-logging of all the 126 drill holes including the 68 holes at San Pablo, andre-assay checks of pulps from selected holes at San Pablo and Tres Amigos.During the property visit the author was able to verify locations of several surface drill collarsas well as check different drill holes from San Pablo and Tres Amigos for consistency ofgeneral rock descriptions and sample assay locations. In addition to the quality controlprograms already in practice, the author requested 350 drill core pulps be sent to ALSChemex Labs for assay checks. Results from this study show an acceptable degree ofcorrelation between new assays from Chemex and the original assays from IPL Labs andInspectorate Labs. Results of this study are found in Appendix IV.28 | P a g e

San José de Gracia Project - MEXICO15. ADJACENT PROPERTIESPublished work in the Geological-Mining Monograph of the State of Sinaloa, 1992, identifysome of the areas discussed in this report near the village of San José de Gracia.Table 7. Summary of the Various Mines Located in the San José de Gracia Mining DistrictName Strike and Width m Length m Host Rock Mineralogy Grades Mining WorksDipTresAmigosN40°W, 60°NW 4 2<strong>43</strong> QuartzmonzoniteGold, silver andcopperGold: 10 g/t, silver: 69g/t, copper 1.65%Three short levelsCeceña N30°E, 47°NW 2 55 Andesite tuff Gold and copper inquartzGold: 3.7 g/t, Silver:10.7 g/tSeveral shortlevelsSanGonzaloN40°E, 70°NW 0.7 37 Quartzites Gold and silver inquartzGold: 3.8 g/t, Silver:139 g/tTwo short 12 mand 37 m levelsPilarcitos N30°W, 80°NE 1 80 Slates Gold /silver in qtz Gold: 1 g/t, Silver: 25 Buried (tailings)La Sorpresa N34°W, 24°NE 1.5 22 Slates Gold and silver inquartzGold: 0.0 g/t, Silver:14.9 g/tWell and twolevelsSan Rosa N60°E, 60°NW 1.2 100 BreccioidalTuffGold in quartz No sampling Buried well andcross-cutLa Prieta N60°E, 60°NW 1.4 150 Quartzite Gold and copper inquartzGold: 4.0 g/tFive old levelsSan Pablo N40°E, 60°NW 1 123 PorphyriticAnd.Gold, silver andcopper in quartzGold: 21 g/t, Silver 28g/tSeveral old levelsZapopan N46°E, 58°NW 1.1 70 PorphyriticAnd.Gold in quartz No sampling Well and 89 mcross-cutVeta Tierra N35°E, 54°NW 1.3 85 RhyoliticPorph.Gold and silver inquartzGold: 7.06 g/t, Silver15.0 g/tCross-cut and 55m frontLa Unión N72°E, 40°SE 1.1 71 Rhyolitic Por Gold /copper in qtz Gold: 8.3 g/t 61-m levelSta.EduwigesN47°E, 87°NW 2 95 RhyoliticPorphGold and copper inquartzGold: 16.0 g/t Three levels (26,116, 57-mPalosChinosN64°W, 66°SW 2.5 225 RhyoliticPorphGold, silver, copperand ironGold: 111 g/t, Silver77 g/tThree <strong>43</strong>1-mminesLa Cruz N30°W, vert 0.7 100 Rhyolitic Por Gold in quartz Gold: 25 g/t BuriedLa Purísima N45°W, 1 95 PorAnd. Gold in quartz Gold: 20 g/t BuriedLa Escalera N26°W, 60°NW 0.75 32 Rhy por Gold in quartz Gold: 3.45 g/t 35-m levelEl Salto N28°E, 63°NE 2.5 24 Por And. Gold in quartz Gold: 1.85 g/t, 35-m levelEl Ciruelito N<strong>43</strong>°W, 77°NE 2 40 Slates Gold in quartz Gold: 3.0 g/t, Shallow trial pitsFrom the Geological-Mining Monograph of the State of Sinaloa, 1992Other precious metal occurrences have been identified on a new 1:50,000 Governmentgeological map (#560 G13-A81) of the area. These ‘interest areas’ include a concentration29 | P a g e

San José de Gracia Project - MEXICOof prospects known as “Potrero de Vargas, loca ted 9.3 kilometres southwest of San José deGracia inside the current claim block, La Noria, 15 kilometres south of San José de Graciaand “Sierrita de German” located on the boundary of the claim block roughly 24kilometres southeast of the village.The author has not been able to verify the information in Table 7 or the information briefly identifiedabove at Potrero de Vargas, La Noria and Sierrita de German. These areas are not necessarilyindicative of the mineralization to be found on the property that is the subject of the technical report.16. MINERAL PROCESSING and METALLURGICAL TESTINGThe following description was provided by Mr. Wayne Henderson a metallurgicalconsultant, and a one-time VP and director of Dyna USA, who acted on DynaUSA’s behalf onseveral occasions regarding metallurgical and processing issues. At the time the test workwas done Mr. Henderson was employed by Lockwood Greene Engineers but was free toconduct work for personal clients such as Dyna USA on his own time.“Ore and existing mill tailings samples were collected under the supervision of Mr.Henderson prior to DynaMexico assuming full control of the operation. The oresamples consisted of a bulk (about 500 kg) of stockpiled ore from the lower adit of theTres Amigos mine (intercept of the Tres Amigos and Orange Tree veins). In addition,approximately 100 kg of ore as a bulk sample was taken from the surface at the GossanCap area. Three additional ore samples (approximately 5-15 kg each) were assembledfrom splits of the cores from several of the 1997 drilling program core holes andwere primarily to develop samples representing different ore types for testing(other than that represented in the bulk samples). These included: segments fromthe drill hole from Palos Chinos, massive sulphide veins from the Tres Amigos veinand the so-called disseminated, non-sulphide mineralized zones at the bottom ofseveral Tres Amigos core holes. The logic was that major exploratory test work todefine a metallurgical process would be done on the bulk sample from the adit at TresAmigos and the other samples would have limited testing done at the selectedmetallurgical process conditions to verify the performance of that selectedmetallurgical process circuit on other types of San José mineralization. Finally,several bulk samples (50-100 kg) of existing tailings from the Rosarito mill and theold Rosarito mill were collected and used to do flotation, gravity and limitedleachability test work on the tailings.”“The samples were shipped to the laboratory of Carbonyx Carbon Technologies inPlano, Texas where in 2000 and 2001 Mr. Henderson conducted two separatepreliminary test programs, one for the tailings, and the other for a portion of the bulkTres Amigos ore. He developed a concept for the metallurgical processing to produceboth gravity and flotation concentrates (rougher and cleaner). The tests confirmeda metallurgical flow sheet to be utilized at San José to r ecover up to 90% of the feed30 | P a g e

San José de Gracia Project - MEXICOgold into the concentrates. The above “in-house” testing established a preliminaryflowsheet for a mill circuit for processing either primary ore or for reprocessing theexisting tailings. Subsequently Hazen Research Laboratories of Golden, Colorado wasengaged to provide independent verification of the in -house work, and carry outadditional optimization test work. Lockwood Greene/ Mr. Henderson prepared andverified completion of the scope of work.”“In summary, various interim reports and the final report to Dyna, the "Official HazenTest Report,” provided results as follows:The initial gravity beneficiation/flotation test work on the Tres Amigos andGossan Cap bulk ore samples were very encouraging with up to 80% recovery ofthe feed gold into the gravity concentrates while maintaining a minimumconcentrate grade of 100 g Au/t;The existing tailings samples (feed grades of 3 -8 g Au/t) returned similarrecovery results, but had to be cleaned to produce a final concentrate with >100gAu/t;The overall gold recoveries in the gravity cleaner concentrate still were inexcess of 50% of the total feed gold;Flotation tests on primary ore samples resulted in recoveries of 85 -90% of thefeed gold into the rougher concentrates, however, recoveries after cleaning (toget >100 g Au/t grade) dropped to the 65-75% range; andA combination circuit of a gravity pre-concentration stage with flotation on thegravity tailings indicated the potential to recover >90% of the feed gold into thegravity concentrate, the rougher flotation and the cleaner flotation concentrateswhile maintaining a 100 g Au/t grade in all of the concentrates.”“This combination became the basis for subsequent mill circuit design at San José.”31 | P a g e

San José de Gracia Project - MEXICO17. SAN PABLO AREA – History, drilling, data quality and resource estimate17.1. History of ActivityMining activity at the San Pablo prospect is a relatively recent eventwith the majority of the work and exploration at this site occurring from the1980’s to recenttimes. The prospect outcrops prominently along the edge of a more resistant gossanoushilltop, known as the ‘Gossan Cap’. In 1992 and 1997 it was this cap that drew the attentionof companies like Peñoles and Golden Hemlock where they focused their work primarily ondrilling shallow holes near to the top of the ridge and just beneath the Gossan Cap.Photo 5. San Pablo, looking east towards the Gossan CapIn 2003 DynaMexico opened and refurbished an old drift located approximately 60 metersbelow the cap where at least one vein structure is exposed over a strike length of 135mand vertical extent of 40m. It is here that DynaMexico produced 18,250 ounces of gold from42,000 tonnes of production from selected high grade “pockets” of ore. These are historicestimates only and may not be considered reliable.As described by Sullivan and MacFarlane, their activities were small and in need ofguidance;“The operation was based on previous production records, underground sampling and avery small amount of diamond drilling by past operators. Th ere was no formal mine planand day to day operations were sustained by advance on the vein as directed by the minegeologist and foreman.”“Mining was being carried out by drifting along the strike of the vein on multiple levelswith up-dip mining of the vein between the strike drift. The strike drifts wer e32 | P a g e

San José de Gracia Project - MEXICOinterconnected by ramps and approximately 50% of the vein was left in pillars between thestrike drifts. All mining was completed by jackleg and LHD units, which trammed the ore toa stockpile at the portal, a distance of several hundred meters.Dilution of the mineralized veins was estimated to be 40 to 60% in the drifts along strikedue to the narrow width of the veins relative to the strike -heading dimensions (3 - 3.5 m)”.Table 8. Recent Production – San Pablo Vein – DynaMexico (2003 – 2006)Period Total Production(tonnes)Reported Mill Grade (gAu/t)ReportedRecoveryGold Production(oz)2003 7,500 25 ~90% 5,0002004 13,500 25 ~85% 7,5002005 17,500 15 ~75% 5,0002006 Jan. to3,500 15 ~75% 750JuneTotal 42,000 ~20 ~85% 18,250It was not until 2007 when a fan of holes was drilled down plunge from below the currentunderground workings that the continuation of the San Pablo shoot was discovered.17.2. Current drilling at San Pablo 68 holes have been drilled at and around the SanPablo area, a total of 13,923 meters. These programs included 4 reverse circulation holes byPeñoles in 1992, 12 NQ core holes by Golden Hemlock in 1997 and 52 NQ core holes byDynaMexico in 2007 – 2008, utilizing technical personnel contributed by Goldgroup andcontracted by Mineras. This drill program was specifically designed on 50 meter grid spacingand roughly 50 meter pierce points down dip of the vein.The drilling identifies a tabular shaped mineralized body trending approximately 015north northeast with variable dips to the west between 35 and 55 degrees . Along this planethe ore body plunges to the southwest over 550 meters with roughly 70% of the shoot lyingbelow the underground workings at San Pab lo.33 | P a g e

San José de Gracia Project - MEXICOTable 9. All drill hole collars – San Pablo AreaHole_ID east north Elev m Length m azi dip type Company92-007 213024.0 2897050.0 730.0 124.97 90 -45 RC Peñoles92-008 212916.0 2897251.0 670.0 51.82 0 -90 RC Peñoles92-009 213<strong>101</strong>.0 2897240.0 694.8 51.82 0 -90 RC Peñoles92-010 213055.0 2897239.0 685.0 51.82 202 -45 RC Peñoles97-015 213097.8 2897179.0 710.0 55.77 0 -90 DDH Hemlock97-016 213117.8 2897184.0 707.4 48.76 0 -90 DDH Hemlock97-017 213094.7 2897149.0 711.8 54.90 0 -90 DDH Hemlock97-018 213138.8 2897210.0 698.9 42.67 0 -90 DDH Hemlock97-019 213049.8 2897150.0 709.9 39.60 0 -90 DDH Hemlock97-020 213072.8 2897176.0 708.8 47.90 0 -90 DDH Hemlock97-021 213078.8 2897202.0 703.5 42.70 0 -90 DDH Hemlock97-022 213141.8 2897239.0 689.9 22.20 0 -90 DDH Hemlock97-023 213087.8 2897236.0 695.0 14.78 0 -90 DDH Hemlock97-024 213111.8 2897237.0 695.0 52.50 230 -45 DDH Hemlock97-025 213105.8 2897128.0 715.9 45.72 0 -90 DDH Hemlock97-026 213106.0 2897205.8 707.0 66.45 0 -90 DDH Hemlock07-004 212871.2 2897300.9 653.5 169.90 110 -60 DDH DynaMexico07-005 212910.6 2896998.6 722.3 197.60 0 -90 DDH DynaMexico07-007 212927.7 2897110.5 724.2 179.40 110 -60 DDH DynaMexico07-008 212925.1 2897306.1 647.1 149.60 40 -60 DDH DynaMexico07-009 212856.1 2897252.4 679.2 180.75 130 -60 DDH DynaMexico07-010 212855.3 2897253.1 679.4 161.65 0 -90 DDH DynaMexico07-011 212991.0 2897214.0 689.0 148.10 130 -60 DDH DynaMexico07-012 212990.4 2897215.3 688.9 103.70 0 -90 DDH DynaMexico07-023 212929.5 2897044.0 723.5 208.90 110 -60 DDH DynaMexico07-024 213012.4 2897039.8 740.7 255.50 0 -90 DDH DynaMexico07-025 213013.3 2897039.5 740.7 201.15 110 -62 DDH DynaMexico07-026 212963.8 2897168.4 704.8 201.30 110 -60 DDH DynaMexico07-027 212838.5 2897157.5 727.0 258.10 0 -90 DDH DynaMexico07-028 212847.5 2897204.5 697.8 210.00 127 -60 DDH DynaMexico07-029 212846.7 2897205.1 697.8 251.30 0 -90 DDH DynaMexico07-030 212810.7 2897089.0 695.5 259.50 0 -90 DDH DynaMexico07-031 212811.6 2897088.6 695.6 213.35 110 -60 DDH DynaMexico07-032 212810.5 2896994.2 698.3 261.95 0 -90 DDH DynaMexico07-033 212811.3 2896993.9 698.4 200.90 110 -60 DDH DynaMexico07-034 212874.3 2897300.1 653.9 251.05 0 -90 DDH DynaMexico08-046 212731.3 2897182.7 711.9 269.35 0 -90 DDH DynaMexico08-048 212716.0 2897128.1 708.9 269.70 0 -90 DDH DynaMexico08-049 212755.6 2897296.8 670.1 258.25 0 -90 DDH DynaMexico08-050 212750.8 2897229.1 695.4 244.55 0 -90 DDH DynaMexico08-051 212700.2 2897073.1 685.3 231.80 0 -90 DDH DynaMexico08-053 212630.7 2897151.0 689.7 302.20 0 -90 DDH DynaMexico08-056 212686.2 2897003.4 676.8 248.10 0 -90 DDH DynaMexico08-058 212645.5 2897251.5 693.3 312.70 0 -90 DDH DynaMexico08-060 212618.3 2897090.5 678.1 296.55 0 -90 DDH DynaMexico08-062 212673.3 2896960.2 671.5 264.80 0 -90 DDH DynaMexico08-064 212582.4 2896992.2 662.0 282.05 0 -90 DDH DynaMexico08-065 212583.1 2896917.1 634.6 268.30 0 -90 DDH DynaMexico08-067 212544.9 2897106.0 702.2 335.60 0 -90 DDH DynaMexico08-074 212533.9 2897063.9 701.6 364.85 0 -90 DDH DynaMexico08-077 212533.8 2897010.4 670.1 352.66 0 -90 DDH DynaMexico34 | P a g e

San José de Gracia Project - MEXICOHole_ID east north Elev m Length m azi dip type Company08-079 212417.6 2897021.4 691.0 3<strong>43</strong>.51 0 -90 DDH DynaMexico08-081 212421.7 2897075.2 682.8 367.89 0 -90 DDH DynaMexico08-083 212459.7 2897106.9 676.8 346.56 0 -90 DDH DynaMexico08-085 213068.7 2897527.1 672.4 249.02 0 -90 DDH DynaMexico08-086 213016.2 2897447.1 677.1 248.41 0 -90 DDH DynaMexico08-087 212966.7 2897389.1 676.9 249.02 0 -90 DDH DynaMexico08-088 212892.0 2897357.8 683.2 249.02 0 -90 DDH DynaMexico08-089 212751.8 2897233.9 695.1 239.88 110.0 -75 DDH DynaMexico08-090 212730.3 2897184.8 711.6 249.02 110.0 -75 DDH DynaMexico08-091 212712.5 2897120.4 709.0 252.07 110.0 -75 DDH DynaMexico08-092 212705.2 2897071.4 684.9 252.07 110.0 -60 DDH DynaMexico08-093 212685.5 2897004.7 677.4 246.05 110.0 -60 DDH DynaMexico08-094 212628.1 2897157.4 689.5 299.01 110.0 -75 DDH DynaMexico08-095 212618.6 2897089.6 677.9 256.03 110.0 -75 DDH DynaMexico08-096 2125<strong>43</strong>.5 2897108.6 702.2 344.73 110.0 -75 DDH DynaMexico08-097 212534.4 2897063.9 701.7 268.83 110.0 -60 DDH DynaMexico08-098 212550.2 2897012.2 670.2 282.55 110.0 -75 DDH DynaMexicoTable 10. Selected Composites for San Pablo (listed left to right on section)Section Hole# From To width m True width Au gpt1150NE 08-097 227.69 229.75 2.06 2.05 17.0408-093 138.40 138.80 0.40 0.40 28.521200NE 08-060 235.70 238.60 2.90 2.46 13.8808-051 183.55 192.60 9.05 7.50 22.9508-092 124.80 125.80 1.00 0.99 23.3108-092 144.60 145.00 0.40 0.40 30.451250NE 08-048 219.46 228.66 9.20 7.60 4.3908-091 191.20 191.40 0.20 0.19 16.8007-030 124.95 126.55 1.60 1.33 5.9007-030 145.65 146.55 0.90 0.75 4.3007-031 94.25 98.05 3.80 3.79 106.0007-023 69.10 70.50 1.40 1.40 9.161300NE 08-090 190.70 191.90 1.20 1.13 11.5508-090 196.40 197.40 1.00 0.94 4.1107-027 142.80 148.85 6.05 5.02 13.7207-007 85.50 87.50 2.00 1.99 24.551350NE 08-089 173.80 175.10 1.30 1.23 4.1107-029 114.00 115.20 1.20 0.99 6.5707-029 130.60 132.30 1.70 1.41 23.8607-028 <strong>101</strong>.80 104.10 2.30 2.26 4.131400NE 07-010 127.15 134.10 6.95 5.76 1.5307-009 94.00 96.10 2.10 2.05 7.0707-026 51.40 53.30 1.90 1.90 34.0007-026 65.90 67.80 1.90 1.90 3.781450NE 07-012 19.70 23.90 4.20 3.48 10.45(intervals calculated with a 2 g/t Au cut,5 meter barren and 0.1 meter minimum sample.)35 | P a g e

San José de Gracia Project - MEXICO17.3 Proposed drilling at San Pablo Before any further work is started at SanPablo, the underground workings and old stopes must be carefully surveyed and chipsampled to help direct future drilling. An additional 8 drill holes (1220 meters) arerecommended to be collared on seven different sections between 1150NE and 1450NEto infill areas that remain open within the current 50 by 50 meter drill grid. Proposed holesare as follows;Table 11. Proposed drilling for San PabloHole East North Elev m Length Azimuth dip SectionA 212632 2897051 675 250 110 -60 1150NEB 212805 2897039 695 180 110 -65 1200NEC 212890 2897060 710 120 110 -65 1250NED 212866 2897123 725 170 110 -75 1300NEE 212998 2897073 725 100 110 -75 1300NEF 212927 2897153 700 100 110 -70 1350NEG 212940 2897199 700 200 0 -90 1400NEH 213031 2897221 675 100 110 -75 1450NE36 | P a g e

San José de Gracia Project - MEXICO18. TRES AMIGOS AREA – History, drilling and data quality18.1 Recent history. Tres Amigos is a relatively new prospect, located 1.2 kilometersnortheast of San Pablo. Current day exploration and mining activity was not documented indetail until the late 1990’s when Golden Hemlock drilled 26 core holes along the flanksof two intersecting mineralized vein trends. The main Tres Amigos trend strikes northeast at060 and dips variably from 30˚ to 45˚ to the northwest. A second intersecting structureknown as the Orange Tree strikes northwest at 310 and dips 35˚ to 45˚ to the southwest.Photo 6. Tres Amigos Level 1 AditIn 2001, DynaMexico collected a 500 kg bulk sample of stockpiled ore from the lower aditlevel of Tres Amigos as well as three 5-15 kg samples from quartered drillcore in holes drilledin 1997 by Golden Hemlock.18.2 Current Drilling at Tres Amigos Thirty eight core holes (5903 meters) have beendrilled in the Tres Amigos area, twenty six holes by Golden Hemlock in 1997 and twelveholes by DynaMexico under Goldgroup’s technical direction in 2008. The vein structuresare located in an area with deep valley cuts and steep topographic terrain making any futuredrilling problematic unless underground drill drifts are developed. Many of the curren t holeshave two or three collars from one setup, some of which have been turned 180 ˚ to getadditional cuts of the shallow to moderately dipping vein structures.37 | P a g e

San José de Gracia Project - MEXICOTable 12. All drill hole collars – Tres Amigos AreaHole ID east northElev Lengthm m azi dip type Area Company97-001 213713.0 2898104.4 628.0 62.00 150 -60 DDH Tres_Amigos Hemlock97-002 213713.0 2898104.4 628.0 62.50 150 -80 DDH Tres_Amigos Hemlock97-003 213772.4 2898146.8 637.2 76.00 150 -60 DDH Tres_Amigos Hemlock97-004 213772.4 2898146.8 637.2 73.00 150 -80 DDH Tres_Amigos Hemlock97-005 213818.8 2898102.7 671.0 41.20 150 -60 DDH Tres_Amigos Hemlock97-006 213818.8 2898102.7 671.0 41.00 105 -60 DDH Tres_Amigos Hemlock97-007 213699.2 2898121.3 622.8 89.00 150 -80 DDH Tres_Amigos Hemlock97-008 213699.2 2898121.3 622.8 106.70 330 -80 DDH Tres_Amigos Hemlock97-009 213669.4 2898111.1 620.8 152.40 0 -90 DDH Tres_Amigos Hemlock97-010 213669.4 2898111.1 620.8 115.80 330 -74 DDH Tres_Amigos Hemlock97-011 213659.4 2898065.8 620.0 47.70 0 -90 DDH Tres_Amigos Hemlock97-012 213659.4 2898065.8 620.0 91.40 165 -60 DDH Tres_Amigos Hemlock97-013 213744.4 2898165.9 629.0 156.40 0 -90 DDH Tres_Amigos Hemlock97-014 213740.6 2898129.2 629.0 73.00 0 -90 DDH Tres_Amigos Hemlock97-035 213717.8 2898197.6 628.0 208.79 0 -90 DDH Tres_Amigos Hemlock97-036 213672.5 2898210.0 632.3 268.22 150 -70 DDH Tres_Amigos Hemlock97-037 213749.8 2898168.6 630.0 118.30 63 -75 DDH Tres_Amigos Hemlock97-039 213749.8 2898168.6 630.0 118.00 63 -60 DDH Tres_Amigos Hemlock97-040 213749.8 2898168.6 630.0 140.50 2<strong>43</strong> -75 DDH Tres_Amigos Hemlock97-041 213724.3 2898128.4 628.0 93.30 0 -90 DDH Tres_Amigos Hemlock97-042 213726.8 2898183.6 629.0 128.50 0 -90 DDH Tres_Amigos Hemlock97-0<strong>43</strong> 213726.8 2898183.6 629.0 127.13 63 -70 DDH Tres_Amigos Hemlock97-044 213724.8 2898206.6 630.0 150.91 63 -84 DDH Tres_Amigos Hemlock97-045 213672.5 2898210.0 632.3 192.38 63 -72 DDH Tres_Amigos Hemlock97-046 213651.8 2898222.6 633.0 239.30 63 -80 DDH Tres_Amigos Hemlock97-047 213772.4 2898146.8 637.2 137.20 0 -90 DDH Tres_Amigos Hemlock08-052 213490.0 2898016.2 677.9 205.40 0 -90 DDH Tres_Amigos DynaMexico08-102 213492.0 2898017.0 678.2 252.07 050.0 -60 DDH Tres_Amigos DynaMexico08-110 213641.7 2898246.7 637.9 249.02 000.0 -90 DDH Tres_Amigos DynaMexico08-111 213641.4 2898246.0 637.8 252.07 200.0 -75 DDH Tres_Amigos DynaMexico08-112 213639.7 2898245.2 637.9 200.25 065.0 -75 DDH Tres_Amigos DynaMexico08-113 213647.6 2898219.8 636.6 200.25 000.0 -90 DDH Tres_Amigos DynaMexico08-114 213647.6 2898218.1 636.8 281.90 200.0 -75 DDH Tres_Amigos DynaMexico08-115 213695.0 2898210.7 633.6 200.10 000.0 -90 DDH Tres_Amigos DynaMexico08-116 213694.8 2898210.3 633.6 250.05 200.0 -75 DDH Tres_Amigos DynaMexico08-117 213690.9 2898114.7 621.9 251.75 238.0 -60 DDH Tres_Amigos DynaMexico08-118 213674.5 2898059.8 617.8 250.15 230.0 -75 DDH Tres_Amigos DynaMexico08-119 213687.9 2897791.0 597.8 200.25 130.0 -60 DDH Tres_Amigos DynaMexico18.3 Proposed Drilling at Tres Amigos The largest concentration of drilling at TresAmigos was completed in 1997 by Golden Hemlock (24 holes by Golden Hemlock, 12 holesby DynaMexico. Unfortunately, these historical holes by Golden Hemlock had no record ofquality control and until other ‘check’ work is done the current data may limit theupgrading of any future resource estimates.To improve upon the lack of support of normal standard, duplicates and blank inserts, it isrecommended that at least 6 historical drill holes (approx 975 meters) be twinned andresults used to compare and support assays from 1997. Recommended holes to be twinnedare as follows:Tres Amigos vein – twin holes 97-007, 97-013, and 97-041Orange Tree vein – twin holes 97-039, 97-044, and 97-04538 | P a g e

San José de Gracia Project - MEXICOSince the completion of this report the author understands that some if not all of the qualitycontrol issues during the 1997, 2007 and 2008 drill programs were addressed. New chartsseen by the author reflect improved standard deviation ranges for Standards SP -37, Sg-31 andOxL-51, however this information has not been substantiated.Table 13. Selected composites - Tres Amigos (listed left to right on section)Section Hole# From To width m True width Au gpt Vein2075NE 08-114 162 163.7 1.7 1.35 8.28 Tres Amigos97-010 88.4 89.9 1.5 1.02 10.28 Tres Amigos97-009 63.5 65 1.5 1.24 4.15 Tres Amigos2100NE 08-113 190.2 193.3 3.1 2.55 3.42 Tres Amigos97-007 57 67 10 8.91 3.41 Tres Amigos97-007 71 75 4 3.56 2.68 Tres Amigos97-007 83 85.3 2.3 2.05 8.66 Tres Amigos97-002 42.7 58.2 15.5 13.81 3.99 Tres Amigos97-001 37.5 40 2.5 2.33 7.14 Tres Amigos2125NE 08-116 134.8 138.1 3.3 2.57 21.74 Tres Amigos97-036 119.5 121.5 2 1.85 6.4 Tres Amigos97-041 80 86 6 4.97 3.88 Tres Amigos2150NE 08-115 153.3 159 5.7 4.7 8.31 Tres Amigos97-035 126 132 6 4.97 8.84 Tres Amigos97-042 99 105 6 4.97 2.48 Tres Amigos97-042 113 117.5 4.5 3.73 5.06 Tres Amigos97-013 95 107.5 12.5 10.36 20.78 Tres Amigos2175NE 97-047 124.9 132 7.1 5.85 7.51 Tres Amigos97-004 70 73 3 2.67 2.15 Tres Amigos97-003 50 52 2 1.86 2.71 Tres Amigos97-005 25.9 27.8 1.9 1.77 3.61 Tres Amigos2200NE 97-006 27.8 29.65 1.85 1.84 6.46 Tres Amigos2050NW 97-41 80 86 6 4.97 3.88 Orange Tree97-014 50.3 51.5 1.2 0.99 3.59 Orange Tree2075NW 97-040 104 108 4 2.81 7.2 Orange Tree97-040 92 94 2 1.4 10.81 Orange Tree97-040 78 80 2 1.4 14.88 Orange Tree97-037 35.9 37.2 1.3 1.17 11.97 Orange Tree97-039 40.2 <strong>43</strong>.2 3 2.73 29.5 Orange Tree2100NW 97-036 119.5 121.5 2 1.85 6.4 Orange Tree97-042 67 69 2 1.66 5.16 Orange Tree97-042 99 105 6 4.97 2.48 Orange Tree97-042 113 117.5 4.5 3.73 5.06 Orange Tree97-042 88.7 93 4.3 3.56 3.02 Orange Tree97-0<strong>43</strong> 74.7 76 1.3 1.18 4.23 Orange Tree2125NW 08-116 134.8 138.1 3.3 2.57 21.74 Orange Tree08-115 97.6 99.05 1.45 1.19 3.4 Orange Tree97-035 84 86 2 1.66 2.06 Orange Tree97-044 86 88 2 1.73 7.78 Orange Tree97-044 141.5 142.8 1.3 1.12 7.06 Orange Tree97-044 118 120 2 1.73 5.17 Orange Tree2150NW 97-045 100 106 6 5.44 11.46 Orange Tree97-045 136 138 2 1.81 12.32 Orange Tree97-045 172 176 4 3.63 1.98 Orange Tree2175NW 97-046 167.9 169.6 1.7 1.5 2.79 Orange Tree08-112 167.1 168.82 1.72 1.58 2.35 Orange Tree2200NW 08-110 165.45 167.25 1.8 1.47 2.64 Orange Tree(intervals calculated with a 2 g/t Au cut,5 meter barren and 0.1 meter minimum sample.)39 | P a g e

19. LA PURISIMA / LA U<strong>NI</strong>ON AREASSan José de Gracia Project - MEXICOThese mining areas are located in the southern portion of the three kilometre long stretch of oldmines and prospects at San José de Gracia and both have served as important gold producers inthe past history of this mining camp.19.1 La Purisima – History and recent drilling by DynaMexico Sullivan and MacFarlanedescribe this area as follows:“The La Purisima trend represents the area of greatest past production at San José de Graciawith over 471,000 ounces of gold produced from highly oxidized, high grade (66.7 g/t Au)quartz veins in the Anglo, Rosario and La Cruz deposits on Purisima Ridge ”. The author cautionsthat these are historic estimates only and may not be considered reliable.“Mining of the La Purisima trend exploited a southeast strikin g, moderately (45-50˚) southwestdipping quartz vein system along a 1.25 kilometre strike length and 400 meters down dip(250m vertical). Based on the spacing of orebodies along the La Purisima trend, it appears thatthe mines were exploiting high grade, southwest plunging ore shoots that developed at regularintervals along the trend of the vein system. The orientation of workings in the Anglo Minesuggests that this orebody may have formed at the intersection of southeast and southwesttrending vein systems, with the southwest trending veins extending towards mineralization ofthe La Parilla to Veta Tierra trend.”Sullivan and MacFarlane indicate that DynaMexico compiled historic data from the La Purisimatrend and outlined the dimensions and locations of the mined portions of the orebodies.Although this recent map was not located during the time of the property visit it would serve asan important base to plan future exploration and demonstrate the potential of othermineralized trends on the property.Listed below are the locations of the 49 drill holes currently recorded in the database collared atvarious points on the La Purisima trend with Table 14 highlighting some of the bettercomposites from these holes.Table14. All drill hole collars – La Purisima TrendHole ID east north Elev m Length m azi dip type Area Company92-011 212804.0 2896505.0 630.0 146.30 90 -45 RC La_Purisima Peñoles97-051 212670.5 2895765.1 540.0 93.90 0 -90 DDH La_Purisima Hemlock97-052 212948.6 28957<strong>43</strong>.0 512.0 26.52 0 -90 DDH La_Purisima Hemlock97-053 212869.6 2895515.0 509.0 117.07 0 -90 DDH La_Purisima Hemlock97-054 212946.6 2895455.0 510.0 80.50 0 -90 DDH La_Purisima Hemlock97-055 213052.0 2895729.0 465.0 150.30 0 -90 DDH La_Purisima Hemlock97-056 213000.0 2895711.0 491.0 186.90 0 -90 DDH La_Purisima Hemlock97-057 213000.0 2895735.0 485.0 130.80 0 -90 DDH La_Purisima Hemlock97-058 212956.0 2895728.0 510.0 35.67 0 -90 DDH La_Purisima Hemlock97-059 212956.1 2895718.8 511.8 38.41 0 -90 DDH La_Purisima Hemlock97-060 212893.6 2895701.0 511.0 74.09 0 -90 DDH La_Purisima Hemlock97-061 213086.9 2895413.4 487.0 38.11 0 -90 DDH La_Purisima Hemlock40 | P a g e

San José de Gracia Project - MEXICOHole ID east north Elev m Length m azi dip type Area Company97-062 213086.9 2895413.4 487.0 54.88 62 -60 DDH La_Purisima Hemlock97-063 212869.0 2896326.0 590.0 141.80 57 -60 DDH La_Purisima Hemlock97-064 211960.0 2895020.0 420.1 140.55 0 -90 DDH La_Purisima Hemlock07-001 212944.3 2896203.0 596.4 129.20 55 -60 DDH La_Purisima DynaMexico07-002 212887.9 2896286.7 590.6 167.50 55 -60 DDH La_Purisima DynaMexico07-003 212800.6 2896342.7 589.8 185.85 55 -60 DDH La_Purisima DynaMexico07-015 212867.0 2896328.0 591.4 166.70 30 -60 DDH La_Purisima DynaMexico07-016 212868.8 2896325.8 590.0 174.50 57 -45 DDH La_Purisima DynaMexico07-017 212865.9 2896328.3 590.1 137.70 0 -90 DDH La_Purisima DynaMexico07-018 212891.2 2896015.7 536.1 151.20 0 -90 DDH La_Purisima DynaMexico07-019 212891.9 2896015.6 536.3 147.65 90 -60 DDH La_Purisima DynaMexico07-020 213064.4 2895722.7 462.3 156.20 80 -75 DDH La_Purisima DynaMexico07-021 212683.3 2895994.7 544.7 191.25 90 -75 DDH La_Purisima DynaMexico07-022 212683.3 2895994.7 544.7 198.85 0 -90 DDH La_Purisima DynaMexico07-035 212752.1 2895814.0 547.5 254.10 0 -90 DDH La_Purisima DynaMexico07-036 212711.1 2895919.9 549.3 244.40 60 -75 DDH La_Purisima DynaMexico07-037 212710.7 2895919.5 549.3 253.50 0 -90 DDH La_Purisima DynaMexico07-038 212769.7 2895997.5 501.8 205.65 0 -90 DDH La_Purisima DynaMexico07-039 212845.9 2895989.0 511.7 206.85 0 -90 DDH La_Purisima DynaMexico07-040 212675.3 2896049.0 541.4 308.05 60 -75 DDH La_Purisima DynaMexico07-041 212674.9 2896048.8 541.4 309.65 0 -90 DDH La_Purisima DynaMexico07-042 212698.9 2896142.5 547.5 306.65 0 -90 DDH La_Purisima DynaMexico08-0<strong>43</strong> 212776.4 2895751.1 529.5 300.65 0 -90 DDH La_Purisima DynaMexico08-044 212807.5 2895454.8 534.2 301.40 0 -90 DDH La_Purisima DynaMexico08-045 213210.6 2896136.8 573.6 201.10 0 -90 DDH La_Purisima DynaMexico08-047 213219.4 2895882.9 535.9 252.85 60 -60 DDH La_Purisima DynaMexico08-063 212756.4 2895525.4 538.9 353.10 0 -90 DDH La_Purisima DynaMexico08-066 212691.4 2895779.5 542.8 346.00 0 -90 DDH La_Purisima DynaMexico08-068 212754.8 2895814.9 547.2 255.12 60 -65 DDH La_Purisima DynaMexico08-069 212774.7 2895752.1 529.7 282.55 60 -50 DDH La_Purisima DynaMexico08-070 212747.3 2895861.5 554.2 255.12 60 -70 DDH La_Purisima DynaMexico08-071 212886.1 2895728.7 514.8 276.45 60 -60 DDH La_Purisima DynaMexico08-073 212908.7 2895666.7 510.5 230.73 60 -60 DDH La_Purisima DynaMexico08-082 212666.1 2895830.3 558.2 212.20 60 -70 DDH La_Purisima DynaMexico08-084 212789.3 2895675.9 530.8 297.30 60 -60 DDH La_Purisima DynaMexico08-099 212826.9 2895609.8 523.1 252.07 60 -70 DDH La_Purisima DynaMexico08-100 212880.8 2895565.3 511.7 236.83 60 -60 DDH La_Purisima DynaMexicoTable 15. Selected composites – La Purisima TrendDrill hole Area length (m) Au g/t Ag g/t Cu% Pb% Zn%97-055 La_Purisima 3.00 5.24 28.5 0.63 0.35 1.8397-063 La_Purisima 7.00 3.13 4.0 0.07 0.02 0.0097-063 La_Purisima 2.70 8.45 11.1 0.68 0.00 0.0007-016 La_Purisima 2.15 5.20 4.2 0.22 0.00 0.0107-021 La_Purisima 2.10 75.90 76.0 1.61 0.07 0.0007-036 La_Purisima 1.42 4.47 2.6 0.01 0.01 0.0607-037 La_Purisima 2.20 4.88 23.0 0.01 0.01 0.0007-039 La_Purisima 3.25 10.93 4.6 0.04 0.00 0.0107-042 La_Purisima 2.20 3.02 2.0 0.01 0.01 0.0508-068 La_Purisima 1.60 18.16 8.3 0.04 0.03 0.2208-070 La_Purisima 1.10 9.50 2.7 0.01 0.00 0.0608-082 La_Purisima 1.70 18.16 0.1 0.00 0.00 0.04(intervals calculated with a 2 g/t Au cut,5 meter barren and 0.1 meter minimum sample41 | P a g e

San José de Gracia Project - MEXICO19.2 La Union – History and recent drilling by DynaMexico The La Union mine is part ofthe larger La Parilla to Veta Tierra trend that in total comprise five southwest striking,northwest dipping (50-70˚) veins (Veta Teirra, Sta Eduwiges, La Union, La Mochemara, LaParilla) traced over a 700 meters strike length. Sullivan and MacFarlane describe the following:“Down dip continuity of the veins within this trend has been confirmed by two phases of drillingby Peñoles in 1992 and by Hemlock in 1997. In addition to down dip potential, the vein isinterpreted to coalesce at deeper levels into a central feeder vein, which may host significantgold mineralization through increased vein widths and the development of structurallycontrolled shoots.”Recent drilling by DynaMexico, utilizing technical personnel contributed by Goldgroup andcontracted by Mineras has targeted gold mineralization along this trend, which can behighlighted most notably by hole 08-76 that assayed 36.09 g/t Au over 2.10 meters from 32.75to 34.85 meters depths. The drill hole location is approxim ately 100 meters down plunge of theold La Union mine where underground sampling by Sullivan and MacFarlane obtained gradesup to 200 g/t gold.Listed below are the locations of the 30 drillholes currently recorded in the database at LaUnion and other areas along the La Parilla – Veta Tierra trend. Table 17 highlights some of thebetter composites from these holes.Table 16. All drill hole collars - La Union AreaHole ID east north Elev m Length m azi dip type Area Company92-001 212890.0 2896746.0 685.0 201.17 150 -45 RC La_Union Peñoles92-002 213064.0 2896931.0 760.0 201.17 150 -45 RC La_Union Peñoles92-003 213018.0 2896661.0 720.0 120.40 150 -45 RC La_Union Peñoles92-004 213026.0 2896823.0 765.0 152.40 150 -45 RC La_Union Peñoles92-005 213196.0 2896851.0 790.0 100.58 150 -45 RC La_Union Peñoles92-006 213221.0 2897014.0 748.0 158.50 150 -45 RC La_Union Peñoles97-027 212959.4 2896768.7 730.0 82.30 90 -60 DDH La_Union Hemlock97-028 212959.4 2896768.7 730.0 28.04 0 -90 DDH La_Union Hemlock97-029 212930.8 2896795.0 730.0 44.20 90 -60 DDH La_Union Hemlock97-030 212950.4 2896714.9 698.0 100.58 110 -60 DDH La_Union Hemlock97-031 212948.7 2896737.7 710.0 100.58 110 -50 DDH La_Union Hemlock97-032 212912.9 2896707.0 690.0 128.00 110 -60 DDH La_Union Hemlock97-033 212905.3 2896744.9 692.0 161.54 110 -50 DDH La_Union Hemlock97-034 212947.0 2896685.2 688.0 65.53 110 -60 DDH La_Union Hemlock08-055 212791.2 2896815.2 637.3 212.45 110 -60 DDH La_Union DynaMexico08-057 212846.8 2896836.3 662.8 203.35 110 -60 DDH La_Union DynaMexico Goldgroup/Dyna08-059 212779.6 2896761.8 653.2 218.95 110 -60 DDH La_Union DynaMexico Goldgroup/Dyna08-061 212740.8 2896701.9 622.9 218.90 150 -60 DDH La_Union DynaMexico Goldgroup/Dyna08-072 212739.2 2896703.3 622.7 227.30 000.0 -90 DDH La_Union DynaMexico oldgroup/Dyna08-075 212613.9 2896603.5 588.5 241.90 130.0 -60 DDH La_Union DynaMexico Goldgroup/Dyna08-076 212685.5 2896670.6 603.8 274.60 130.0 -60 DDH La_Union DynaMexico Goldgroup/Dyna08-078 212526.4 2896492.1 572.0 222.60 130.0 -60 DDH La_Union DynaMexico Goldgroup/Dyna08-080 212568.5 2896555.2 595.3 217.55 132.0 -75 DDH La_Union DynaMexico Goldgroup/Dyna08-120 212622.1 2896721.4 610.4 250.85 130.0 -60 DDH La_Union DynaMexico Goldgroup/Dyna08-121 212600.0 2896691.4 623.6 94.15 130.0 -60 DDH La_Union DynaMexico Goldgroup/Dyna42 | P a g e

San José de Gracia Project - MEXICOHole ID east north Elev m Length m azi dip type Area Company08-122 212549.7 2896657.5 629.1 251.25 130.0 -60 DDH La_Union DynaMexico Goldgroup/Dyna08-123 212490.9 2896609.8 631.6 250.70 130.0 -60 DDH La_Union DynaMexicoGoldgroup/Dyna08-124 212<strong>43</strong>5.4 2896554.1 623.4 250.90 130.0 -60 DDH La_Union DynaMexico Goldgroup/Dyna08-125 212596.3 2896690.8 623.4 252.35 130.0 -75 DDH La_Union DynaMexico Goldgroup/Dyna08-126 212542.7 28967<strong>43</strong>.0 647.6 252.35 130.0 -60 DDH La_Union DynaMexico Goldgroup/DynaTable 17. Selected composites for La Union AreaDrill hole Area length (m) Au g/t Ag g/t Cu% Pb% Zn%92-001 La_Union 14.96 2.58 0.00 0.00 0.0097-027 La_Union 1.00 6.14 12.5 0.05 0.24 0.0497-029 La_Union 3.10 3.63 8.6 0.11 0.02 0.0697-030 La_Union 3.10 4.62 9.1 0.50 0.00 0.0197-031 La_Union 4.00 2.84 6.7 0.34 0.00 0.0197-034 La_Union 2.00 8.87 4.1 0.14 0.00 0.0108-061 La_Union 3.50 2.01 24.8 0.45 0.22 0.1508-076 La_Union 2.10 36.09 47.8 0.<strong>43</strong> 0.80 1.0608-080 La_Union 3.10 4.82 4.4 0.11 0.00 0.01(intervals calculated with a 2 g/t Au cut,5 meter barren and 0.1 meter minimum sample)<strong>43</strong> | P a g e

San José de Gracia Project - MEXICO20. RESOURCE ESTIMATION - SAN JOSÉ DE GARCIAAt the request of Keith Piggott and DynaMexico, Giroux Consultants Ltd. was retained toproduce a resource estimate on four separate vein systems on the San José de Garcia Project inSinaloa State, Mexico.20.1 Data AnalysisThe data base for the San José de Garcia Project consisted of 200 drill holes of which 189 werediamond drill holes and the remaining 11, drilled in 1992, were reverse circulation holes.Acomplete listing of drill holes provided is attached as Appendix 1.This resource estimateconcentrates on four mineralized vein systems on the property namely: La Purisima, La Union,San Pablo and Tres Amigos. Project geologists built three dimensional solids to constrain eachvein system as shown below.Figure 13 : Isometric view looking northeast showing the 4 Domains and drill hole traces44 | P a g e

San José de Gracia Project - MEXICOFigure 14: Isometric view looking northeast showing the four domains with surface topographyThe statistics for drill hole samples within each vein are tabulated below.VariableTable 18: Sample Statistics sorted by VeinNumber Mean Standard Minimum Maximumof SamplesDeviation Value ValueCoefficient ofVariationLa PurisimaAu (g/t) 63 6.76 14.39 0.118 78.10 2.12Ag (g/t) 63 8.21 19.77 0.05 150.00 2.41Cu (%) 63 0.14 0.60 0.0021 4.72 4.39Zn (%) 63 0.13 0.36 0.0001 1.83 2.75La UnionAu (g/t) 37 6.76 13.24 0.987 77.00 1.96Ag (g/t) 37 14.62 17.93 0.90 86.90 1.22Cu (%) 37 0.34 0.<strong>43</strong> 0.0015 2.00 1.27Zn (%) 37 0.17 0.39 0.0008 1.53 2.28San PabloAu (g/t) 109 9.31 24.62 0.003 240.61 2.64Ag (g/t) 109 13.45 19.11 0.05 121.60 1.42Cu (%) 109 0.29 0.42 0.0013 2.79 1.47Zn (%) 109 0.05 0.17 0.0001 1.32 3.11Tres AmigosAu (g/t) 216 4.29 8.42 0.001 85.72 1.96Ag (g/t) 216 9.83 14.28 0.05 85.00 1.45Cu (%) 216 0.21 0.40 0.0001 2.90 1.87Zn (%) 180 0.77 1.65 0.0001 12.<strong>43</strong> 2.1545 | P a g e

Historical MineVein StructuresSan José de Gracia(Block grades - ppm Au)10 to 604 to 102 to 40 to 2Historical Drilling(San José de Gracia)DynaMexico (2007 - 08, 126 holes)Hemlock (1997 - 63 holes)Penoles (1992, 11 RC holes)00.25kilometres0.5

San José de Gracia Project - MEXICOThe individual grade distribution for each variable within each vein was examined and a caplevel was chosen to minimize the effects of a few erratic high grades. The cap level and numberof samples capped is tabulated below.Table 19 : Capping Strategy for VeinsDomain Variable Cap Level NumberCappedLa Purisima Au (g/t) 20.0 g/t 4Ag (g/t) 30.0 g/t 2Cu (%) 0.70 % 1Zn (%) 1.00 % 3La Union Au (g/t) 12.0 g/t 4Ag (g/t) 30.0 g/t 4Cu (%) 1.0 % 3Zn (%) 0.50 % 3San Pablo Au (g/t) 50.0 g/t 1Ag (g/t) 60.0 g/t 4Cu (%) 1.0 % 3Zn (%) 0.60 % 2Tres Amigos Au (g/t) 30.0 g/t 5Ag (g/t) 65.0 g/t 2Cu (%) 2.1 % 1Zn (%) 6.0 % 4The effects of capping a few erratic high values is demonstrated below with the mean gradelowered and the coefficient of variation, a reflection of the sampling variability, reduced toreasonable levels (in most cases under 2).VariableTable 20: Capped Sample Statistics sorted by VeinNumberof SamplesMeanStandardDeviationMinimumValueMaximumValueCoefficient ofVariationLa PurisimaAu (g/t) 63 4.60 5.90 0.118 20.00 1.28Ag (g/t) 63 6.16 7.89 0.05 30.00 1.28Cu (%) 63 0.07 0.15 0.0021 0.70 2.09Zn (%) 63 0.11 0.26 0.0001 1.00 2.46La UnionAu (g/t) 37 4.21 3.52 0.987 12.00 0.84Ag (g/t) 37 11.41 9.15 0.90 30.00 0.80Cu (%) 37 0.30 0.31 0.0015 1.00 1.04Zn (%) 37 0.10 0.16 0.0008 0.50 1.65San PabloAu (g/t) 109 7.56 11.09 0.003 50.00 1.47Ag (g/t) 109 12.48 15.19 0.05 60.00 1.22Cu (%) 109 0.26 0.31 0.0013 1.00 1.20Zn (%) 109 0.05 0.12 0.0001 0.60 2.58Tres AmigosAu (g/t) 216 3.84 5.39 0.001 30.00 1.40Ag (g/t) 216 9.66 13.48 0.05 65.00 1.40Cu (%) 216 0.21 0.38 0.0001 2.10 1.80Zn (%) 180 0.70 1.33 0.0001 6.00 1.9046 | P a g e

San José de Gracia Project - MEXICO20.2 CompositesThe majority of samples (65%), within the veins, were less than 2 m in length. A compositelength was chosen at 2 m. Composites were formed to honour the vein boundaries. Intervals atthe boundaries less than 1 m were combined with adjoining samples to produce a uniformsupport of 2 ± 1 m. The statistics for 2 m composites within the various veins is tabulated below.Twenty-eight composites less than 1 m (narrow vein intersections) were diluted out to 1 m.VariableTable 21: 2 m Composite Statistics sorted by VeinNumberof SamplesMeanStandardDeviationMinimumValueMaximumValueCoefficient ofVariationLa PurisimaAu (g/t) 57 4.04 5.19 0.342 20.00 1.28Ag (g/t) 57 5.60 7.22 0.05 30.00 1.29Cu (%) 57 0.07 0.14 0.0030 0.682 1.96Zn (%) 57 0.10 0.25 0.0001 1.00 2.53La UnionAu (g/t) 33 3.85 3.05 0.987 12.00 0.79Ag (g/t) 33 10.31 7.88 1.40 30.00 0.76Cu (%) 33 0.27 0.28 0.002 1.00 1.04Zn (%) 33 0.06 0.12 0.001 0.48 1.83San PabloAu (g/t) 81 6.76 9.13 0.015 41.61 1.35Ag (g/t) 81 10.78 12.67 0.05 54.00 1.17Cu (%) 81 0.20 0.24 0.001 0.952 1.16Zn (%) 81 0.04 0.09 0.0001 0.54 2.44Tres AmigosAu (g/t) 200 3.76 4.98 0.001 30.00 1.33Ag (g/t) 200 8.76 11.41 0.05 55.82 1.30Cu (%) 200 0.18 0.31 0.0001 2.00 1.68Zn (%) 168 0.66 1.18 0.0001 6.00 1.8020.3 VariographyPairwise relative semivariograms were used to model each variable within each vein wherepossible. The average strike and dip for the veins were used to model the variables. Only theTres Amigos and San Pablo had enough composites to develop models. In each case anisotropicnested spherical models were fit to each variable. For the La Union and La Purisima veins,where there were too few composites to determine a model, the Tres Amigos model was usedbut the directions for the structures were modified to fit the strike and dip of the La Union andLa Purisima veins respectively. The semivariogram models are summarized below.47 | P a g e

San José de Gracia Project - MEXICOTable 22: Summary of Semivariogram ParametersDomain Variable Az/dip Co C1 C2 Short Range(m)Long Range(m)Tres Amigos Au 240 / 0 0.20 0.45 0.20 20 100150/-57 0.20 0.45 0.20 10 20330/-33 0.20 0.45 0.20 25 100Ag 240 / 0 0.15 0.30 0.32 26 140150/-57 0.15 0.30 0.32 10 40330/-33 0.15 0.30 0.32 20 100Cu 240 / 0 0.20 0.50 0.20 25 120150/-57 0.20 0.50 0.20 5 15330/-33 0.20 0.50 0.20 30 60Zn 240 / 0 0.30 0.60 0.34 30 100150/-57 0.30 0.60 0.34 10 60330/-33 0.30 0.60 0.34 60 100San Pablo Au 200/0 0.50 0.30 0.40 40 100110/-58 0.50 0.30 0.40 10 15290/-32 0.50 0.30 0.40 30 60Ag 200/0 0.30 0.30 0.40 40 80110/-58 0.30 0.30 0.40 10 15290/-32 0.30 0.30 0.40 30 60Cu 200/0 0.40 0.30 0.50 30 80110/-58 0.40 0.30 0.50 10 15290/-32 0.40 0.30 0.50 30 60Zn 200/0 0.40 0.30 0.30 30 80110/-58 0.40 0.30 0.30 10 15290/-32 0.40 0.30 0.30 30 100La Union Au 207/0 0.20 0.45 0.20 20 100117/-54 0.20 0.45 0.20 10 20297/-36 0.20 0.45 0.20 25 100Ag 207/0 0.15 0.30 0.32 26 140117/-54 0.15 0.30 0.32 10 40297/-36 0.15 0.30 0.32 20 100Cu 207/0 0.20 0.50 0.20 25 120117/-54 0.20 0.50 0.20 5 15297/-36 0.20 0.50 0.20 30 60Zn 207/0 0.30 0.60 0.34 30 100117/-54 0.30 0.60 0.34 10 60297/-36 0.30 0.60 0.34 60 100La Purisima Au 152/0 0.20 0.45 0.20 20 10062/-55 0.20 0.45 0.20 10 20242/-35 0.20 0.45 0.20 25 100Ag 152/0 0.15 0.30 0.32 26 14062/-55 0.15 0.30 0.32 10 40242/-35 0.15 0.30 0.32 20 100Cu 152/0 0.20 0.50 0.20 25 12062/-55 0.20 0.50 0.20 5 15242/-35 0.20 0.50 0.20 30 60Zn 152/0 0.30 0.60 0.34 30 10062/-55 0.30 0.60 0.34 10 60242/-35 0.30 0.60 0.34 60 10020.4 Bulk DensityA total of 234 pieces of core were measured for specific gravity using the weight in air vs. weightin water method. These measurements were all in the San Pablo area. The results are tabulated48 | P a g e

San José de Gracia Project - MEXICObelow sorted by lithology. The average specific gravity of 216 wall rock samples is 2.60 whilethe average for vein material is 2.71. A specific gravity of 2.71 was applied to all estimated veinmaterial in this resource.Table 23: Summary of Specific Gravity DeterminationsLithologyNumber ofSamplesMinimumSGMaximumSGAverageSGAndesite 84 2.<strong>43</strong> 3.12 2.64Breccias 12 2.33 3.09 2.67Ryodacites <strong>43</strong> 2.36 3.03 2.54Ryolites 11 2.42 2.77 2.53Sediments 31 2.42 2.76 2.60Dacites 20 2.40 2.79 2.55Unclassified 15 2.51 2.89 2.63Average Wall Rock 216 2.33 3.12 2.60Quartz Veins 18 2.47 3.07 2.7120.5 Block ModelA block model with blocks 10 x 10 x 5 m in dimension was superimposed over the 4 veinsystems with the percentage of each block within the various vein solids and the percentagebelow surface topography recorded. The block model had the following origin.Lower Left Corner212360 E Column Size – 10 m 151 Columns2895460 N Row Size - 10 m 286 RowsTop of Model995 Elevation Level Size – 5 m 163 LevelsNo Rotation20.6 Grade InterpolationOrdinary kriging was used to interpolate grades for the four variables into all blocks with somepercentage inside the four vein system solids. Kriging was completed in a series of passes withthe dimensions and orientation for the search ellipse determined by the semivariogram models.In pass 1 a minimum of 4 composites were required within a search ellipse with dimensionsequal to ¼ the range of the semivariogram. If the minimum 4 composites were not found forany given block the search ellipse was expanded to ½ the semivariogram range. A third passusing the full range and a fourth pass using twice the range completed the exercise. In all casesif more than 12 composites were found the closest 12 were used with a maximum of 3composites from one hole allowed. The search parameters for gold are summarized below forthe 4 vein systems.49 | P a g e

San José de Gracia Project - MEXICOTable 24: Kriging Parameters for Gold in the Vein SystemsDomain Variable Pass BlocksEstimatedAz/DipSearchDist. mAz/DipSearchDist. mAz/DipSearchDist. mTres Amigos Au 1 240 240/0 25.0 150/-57 5.0 330/-33 25.02 1,280 240/0 50.0 150/-57 10.0 330/-33 50.03 1,071 240/0 100.0 150/-57 20.0 330/-33 100.04 534 240/0 200.0 150/-57 40.0 330/-33 200.0San Pablo Au 1 0 200/0 25.0 110/-58 3.75 290/-32 15.02 112 200/0 50.0 110/-58 7.5 290/-32 30.03 2,605 200/0 100.0 110/-58 15.0 290/-32 60.04 648 200/0 200.0 110/-58 30.0 290/-32 120.0La Purisima Au 1 1 152/0 25.0 62/-55 5.0 242/-35 25.02 82 152/0 50.0 62/-55 10.0 242/-35 50.03 1,573 152/0 100.0 62/-55 20.0 242/-35 100.04 4,270 152/0 200.0 62/-55 40.0 242/-35 200.0La Union Au 1 0 207/0 25.0 117/-54 5.0 297/-36 25.02 181 207/0 50.0 117/-54 10.0 297/-36 50.03 827 207/0 100.0 117/-54 20.0 297/-36 100.04 3,191 207/0 200.0 117/-54 40.0 297/-36 200.020.7 ClassificationBased on the study herein reported, delineated mineralization of the San José de GraciaProperty is classified as a resource according to the following definition from NationalInstrument <strong>43</strong>-<strong>101</strong>“In this Instrument, the terms “mineral resource”, “inferred mineral resource”,“indicated mineral resource” and “measured mineral resource” have the meaningsascribed to those terms by the Canadian Institute of Mining, Metallurgy andPetroleum, as the CIM Standards on Mineral Resources and Reserves Definitions andGuidelines adopted by CIM Council on August 20, 2000, as those definitions may beamended from time to time by the Canadian Institute of Mining, Metallurgy, andPetroleum.”“A Mineral Resource is a concentration or occurrence of natural, solid, inorganic orfossilized organic material in or on the Earth’s crust in such form and quantity andof such a grade or quality that it has reasonable prospects for economic extraction.The location, quantity, grade, geological characteristics and continuity of a MineralResource are known, estimated or interpreted from specific geological evidence andknowledge.”The term Inferred is defined in <strong>NI</strong> <strong>43</strong>-<strong>101</strong> as follows:“An ‘Inferred Mineral Resource’ is that part of a Mineral Resource for whichquantity and grade or quality can be estimated on the basis of geological evidenceand limited sampling and reasonably assumed, but not verified, geological andgrade continuity. The estimate is based on limited information and sampling50 | P a g e

San José de Gracia Project - MEXICOgathered through appropriate techniques from locations such as outcrops,trenches, pits, workings and drill holes.”At this stage of the project there is reasonable geologic continuity based on surface andunderground exposures and drill core to establish the vein boundaries. Grade continuity can bequantified by semivariogram analysis. Usually the classification can be linked to thesemivariogram range with blocks estimated during pass 1 at ¼ of the semivariogram rangebeing classed measured, blocks estimated using ½ the range being classed indicated and allothers classed inferred. At this time there was insufficient drill data to determinesemivariograms on the La Union and La Purisima domains and too few blocks estimated in Pass1 and 2 on the Tres Amigos and San Pablo to classify any of this resource as measured orindicated. The total inferred resource is tabulated below with a gold cut-off of 2 g/t highlightedas a possible cut-off for underground extraction. No economic evaluation of this project hasbeen completed and as a result the economic cut-off is unknown at this time.Cut-offAu (g/t)Tonnes > Cut-off(tonnes)Table 25: San José de Gracia Veins – Inferred ResourceSan José De Gracia Veins - Inferred ResourceGrade > Cut-offContained MetalAu (g/t) Ag (g/t) Cu (%) Zn (%) Ozs. Au Ozs. Ag Lbs Cu Lbs Zn0.50 3,644,000 5.37 9.74 0.19 0.19 629,000 1,141,000 15,267,000 15,267,0001.00 3,632,000 5.38 9.76 0.19 0.19 628,000 1,140,000 15,216,000 15,216,0001.50 3,574,000 5.45 9.83 0.20 0.18 626,000 1,130,000 15,761,000 14,185,0002.00 3,441,000 5.59 10.02 0.20 0.18 618,000 1,109,000 15,175,000 13,657,0002.50 3,277,000 5.75 10.16 0.20 0.17 606,000 1,070,000 14,452,000 12,284,0003.00 2,957,000 6.08 10.42 0.21 0.16 578,000 991,000 13,692,000 10,<strong>43</strong>2,0003.50 2,620,000 6.44 10.63 0.21 0.14 5<strong>43</strong>,000 895,000 12,132,000 8,088,0004.00 2,222,000 6.92 11.00 0.21 0.13 495,000 786,000 10,289,000 6,369,0004.50 1,723,000 7.70 11.67 0.22 0.13 427,000 646,000 8,358,000 4,939,0005.00 1,416,000 8.35 12.44 0.23 0.12 380,000 566,000 7,181,000 3,747,000This total resource is subdivided into the four Vein systems in the Tables below. Note thecombined tonnages, ounces and lbs of the various individual veins may not total exactly with thetable above due to round off errors.Cut-off(Au g/t)Tonnes > Cut-off(tonnes)Table 26: San José de Gracia, Tres Amigo Vein – Inferred ResourceSan José De Gracia, Tres Amigos Veins - Inferred ResourceGrade > Cut-offContained MetalAu (g/t) Ag (g/t) Cu (%) Zn (%) Ozs. Au Ozs. Ag Lbs Cu Lbs Zn0.50 734,000 3.65 8.46 0.18 0.64 86,000 200,000 2,913,000 10,358,0001.00 722,000 3.70 8.50 0.18 0.65 86,000 197,000 2,866,000 10,348,0001.50 677,000 3.86 8.71 0.19 0.66 84,000 190,000 2,836,000 9,852,0002.00 600,000 4.13 9.19 0.19 0.69 80,000 177,000 2,514,000 9,129,0002.50 524,000 4.40 9.49 0.20 0.70 74,000 160,000 2,311,000 8,088,0003.00 414,000 4.84 9.76 0.20 0.69 64,000 130,000 1,826,000 6,299,0003.50 314,000 5.35 9.67 0.19 0.66 54,000 98,000 1,316,000 4,570,0004.00 239,000 5.86 9.59 0.18 0.66 45,000 74,000 949,000 3,478,0004.50 179,000 6.40 9.58 0.18 0.66 37,000 55,000 710,000 2,605,0005.00 129,000 7.04 10.50 0.20 0.66 29,000 44,000 569,000 1,877,00051 | P a g e

San José de Gracia Project - MEXICOTable 27: San José de Gracia, San Pablo Vein – Inferred ResourceCut-off(Au g/t)Tonnes > Cut-off(tonnes)San José De Gracia, San Pablo Veins - Inferred ResourceGrade > Cut-offContained MetalAu (g/t) Ag (g/t) Cu (%) Zn (%) Ozs. Au Ozs. Ag Lbs Cu Lbs Zn0.50 1,029,000 8.79 14.21 0.28 0.06 291,000 470,000 6,353,000 1,361,0001.00 1,029,000 8.79 14.21 0.28 0.06 291,000 470,000 6,353,000 1,361,0001.50 1,028,000 8.80 14.22 0.28 0.06 291,000 470,000 6,347,000 1,360,0002.00 1,023,000 8.84 14.26 0.28 0.06 291,000 469,000 6,316,000 1,353,0002.50 1,014,000 8.89 14.30 0.28 0.06 290,000 466,000 6,260,000 1,342,0003.00 1,001,000 8.97 14.37 0.28 0.06 289,000 462,000 6,180,000 1,324,0003.50 982,000 9.09 14.46 0.28 0.06 287,000 457,000 6,063,000 1,299,0004.00 964,000 9.18 14.58 0.28 0.06 285,000 452,000 5,952,000 1,275,0004.50 938,000 9.32 14.74 0.29 0.06 281,000 445,000 5,998,000 1,241,0005.00 902,000 9.50 14.89 0.29 0.06 276,000 <strong>43</strong>2,000 5,768,000 1,193,000Table 28: San José de Gracia, La Union Area – Inferred ResourceCut-off(Au g/t)Tonnes > Cut-off(tonnes)San José De Gracia, La Union Veins - Inferred ResourceGrade > Cut-offContained MetalAu (g/t) Ag (g/t) Cu (%) Zn (%) Ozs. Au Ozs. Ag Lbs Cu Lbs Zn0.50 733,000 3.89 10.71 0.29 0.07 92,000 252,000 4,687,000 1,131,0001.00 733,000 3.89 10.71 0.29 0.07 92,000 252,000 4,687,000 1,131,0001.50 733,000 3.89 10.71 0.29 0.07 92,000 252,000 4,687,000 1,131,0002.00 731,000 3.89 10.72 0.29 0.07 91,000 252,000 4,674,000 1,128,0002.50 703,000 3.95 10.68 0.29 0.07 89,000 241,000 4,495,000 1,085,0003.00 597,000 4.15 11.20 0.30 0.08 80,000 215,000 3,949,000 1,053,0003.50 496,000 4.34 11.23 0.30 0.08 69,000 179,000 3,281,000 875,0004.00 362,000 4.55 11.03 0.30 0.07 53,000 128,000 2,395,000 559,0004.50 136,000 5.07 10.80 0.30 0.08 22,000 47,000 900,000 240,0005.00 51,000 5.69 10.20 0.29 0.08 9,000 17,000 326,000 90,000Table 29: San José de Gracia, La Purisima Trend – Inferred ResourceCut-off(Au g/t)Tonnes > Cut-off(tonnes)San José De Gracia, La Purisima Veins - Inferred ResourceGrade > Cut-offContained MetalAu (g/t) Ag (g/t) Cu (%) Zn (%) Ozs. Au Ozs. Ag Lbs Cu Lbs Zn0.50 1,148,000 4.34 5.94 0.06 0.08 160,000 219,000 1,519,000 2,025,0001.00 1,148,000 4.34 5.94 0.06 0.08 160,000 219,000 1,519,000 2,025,0001.50 1,136,000 4.37 5.97 0.06 0.08 159,000 218,000 1,503,000 2,004,0002.00 1,087,000 4.48 6.01 0.07 0.09 157,000 210,000 1,678,000 2,157,0002.50 1,035,000 4.59 6.08 0.07 0.09 153,000 202,000 1,598,000 2,054,0003.00 944,000 4.77 6.03 0.07 0.09 145,000 183,000 1,457,000 1,873,0003.50 828,000 4.98 6.09 0.07 0.09 133,000 162,000 1,278,000 1,6<strong>43</strong>,0004.00 657,000 5.30 6.24 0.07 0.08 112,000 132,000 1,014,000 1,159,0004.50 470,000 5.73 6.61 0.07 0.07 87,000 100,000 725,000 725,0005.00 333,000 6.13 6.88 0.07 0.07 66,000 74,000 514,000 514,00052 | P a g e

2225NE2200NE2175NE2150NE2125NE5NE2150NEHistorical Drilling(With drill hole trace)DynaMexico (2007 - 08)Hemlock (1997 )Penoles (1992)2125NE2100NE2075NETres Amigos Block Model - Au( at 520 m Level)10 to 60 ppm4 to 10 ppm2 to 4 ppm0 to 2 ppm2050NE2025NE2000NEVein structures2100NE2075NE2050NE2025NE2000NE

141350N1300NE1250NE1200NE1150NE0NESan Pablo Block Model - Au( at 640m level)10 to 60 ppm4 to 10 ppm2 to 4 ppm0 to 2 ppmHistorical Drilling(With drill hole trace)DynaMexico (2007 - 08, 126 holes)Hemlock (1997 - 63 holes)Penoles (1992, 11 RC holes)Vein Structures

1000NELa Union Block Model - Au(at 470 m level)10 to 60 ppm4 to 10 ppm2 to 4 ppm0 to 2 ppm1200NE1150NEHistorical Drilling(With drill hole trace)DynaMexico (2007 - 08)Hemlock (1997 - 63)Penoles (1992)1100NE1050NEVein structures

Historical Drilling(With drill hole trace)DynaMexico (2007 - 08, 126 holes)Hemlock (1997 - 63 holes)Penoles (1992, 11 RC holes)La Purisima Block Model - Au(at 410 m level)10 to 60 ppm4 to 10 ppm2 to 4 ppm0 to 2 ppmVein Structures

San José de Gracia Project - MEXICO21. OTHER EXPLORATION TARGETSSeveral important and under-explored anomalies are found within the current San José deGracia property. Some of targets are remote and require hor seback, however they shouldbe investigated during any future regional exploration program.21.1 Local Targets (see Fig 20)La Union adit sampling and drill hole (08-76) – assay of 36.09 g/t Au over 2.10 from32.75-34.85?m. Possible location - 100 meter down plunge of old La Union workings.High grade assays from sampling by Sullivan and MacFarlane at La Union mineobtained grades up to 200 g/t gold from flat lying veins.La Ceceña drill hole 08-104 (26.2 g/t Au, 327 g/t Ag, 1.0% Cu over 1.35 meters). Isthis a new shoot with high silver?La Purisima drill hole 07-021 (75.9 g/t Au, 1.6% Cu over 2.10 meters). One of threeencouraging new drill intercepts.Multiple rock chip anomalies in the Lower Volcanic package, but more importantlyin the underlying sedimentary Palaeozoic rocks. Does this represent a similarsetting to the La Prieta mine where flat lying ‘ladder’ veins likely exist between twosteeply dipping parallel fault structures? Investigate holes 07 -009 (8.24 g/t Au over3.09m at San Pablo), 97-047 (7.51 g/t Au over 5.85m at Tres Amigos). Historicalpast production at La Prieta is approximately 215,000ozs with average grade of 27.6g/t Au.21.2 Regional Targets (see Figs. 21, 22 and 23)Various regional multispectral (FeO, clay) satellite anomalies, s pecifically importantat or close to junctions of regionally interpreted “Graben bounding” fault structures.Strong stream sediment anomalies from Dyna Mexico work, near La Prieta andnorth as well as south of San José de Gracia.Investigate and rock chip sample the zones of precious metal mineralization knownas “Potrero de Vargas, located 9.3 kilometres southwest of San José de Gracia insideDynaMexico’s current claim block, Sierrita de German located on the boundary of theclaim block roughly 24 kilometres southeast of the village and La Noria, south of SanJosé de Gracia.53 | P a g e

1600NE1550NE1500NE1450NE1400NE1350NE1300NE1250NE1200NE1150NE1100NE1050NE1000NE1600NE1550NE1500NE1450NE1400NE1350NE1300NE1250NE1200NE1150NE1100NE1050NE1000NE2225NE2200NE2175NEHistorical Mine2150NE2125NE2100NE2075NE2050NE2025NE2000NEVein StructuresLine2225NE2200NE2175NE2150NE2125NE2100NE2075NE2050NE2025NE2000NEHistorical Drilling(San Jose de Gracia)DynaMexico (2007 - 08, 126 holes)Hemlock (1997 - 63 holes)Penoles (1992, 11 RC holes)00.25kilometres0.5

1050NE1300NE1350NE1400NE1450NE1500NE1550NE1600NE2200NE2225NE2200NE2175NE2150NE2125NE2100NE2075NE2050NE2025NE2000NE2225NE2175NE2150NE2125NE2100NE2075NE2050NE2025NE2000NE1250NE1200NE1150NE1100NEVein StructuresOld / prospect1000NEDyna Mexico 2006(Gold in Streams, ppb)50025050

2200NE2225NE2200NE2175NE2150NE2125NE2100NE2075NE2050NE2025NE2000NE2225NE2175NE2150NE2125NE2100NE2075NE2050NE2025NE2000NEVein StructuresOld prospectRock Chips 2007-2008(ppb gold on 100m x 100m grid)1,000 to 4,000200 to 1,00080 to 20020 to 80

San José de Gracia Project - MEXICO22. CONCLUSIONSThe large mineral claim holdings at San José de Gracia cover an area of 99,141 hectares andinclude many old precious metal gold mines and prospects located centrally along a northsouthstrike length of at least four kilometres. Most recent production in this area hasbeen by DynaMexico when it produced 18,250 ounces of gold between 2003 and mid2006.Gold mineralization at San José de Gracia is confined along vein structures hosted by andesiteand rhyodacite of the Lower Volcanic sequence of rocks within the Sierra Madre Occidental.Common wall rock alteration and vein mineralogy seen in drill core and surface exposuresresemble in many ways other well known low -sulphidation epithermal system such asTayoltita, Mexico and El Peñón, Chile.DynaMexico, utilizing technical personnel contributed by Goldgroup and contracted byMineras has been active in exploration activities at the San José de Gracia camp sinceSeptember 1, 2006, and has conducted several geological and geochemical surveys andcompleted a total of 126 core holes in five general areas.Control charts show most of the drill hole assay data on the three different standards tobe within two standard deviation of the norm, however re-assay checks of the selectedbatches with standards above and below two standard deviation should be initiated.Although these concerns have been identified, the author believes sample preparation,security and general analytical procedures have been adequate.Four inferred resource estimates are defined on the San José de Gracia property ,identified as Tres Amigos, San Pablo, La Union and the La Purisima zones. Continueddrilling at all zones will only enhance the sample density and quality of information ,including the proposal for drilling at least six twinned holes at Tres Amigos to helpsupport historical information and quality control issues.Several highly anomalous and under-explored drill hole intercepts and regional rock chipsamples for gold have been identified on the San José de Gracia property. The strength ofthese rock assays combined with encouraging stream sediment anomalies strongly supportsproposals for future ‘follow-up’ regional exploration.Exploration highlights on the San Jose de Gracia property include:Although not considered reliable, estimated historical gold production in the SanJose de Gracia camp prior to 1970 is reported to be 1,000,000 ounces gold; withgrades up to 66 grams per tonne gold.54 | P a g e

San José de Gracia Project - MEXICOThis report identifies an inferred resource of over 618,000 ounces of gold located infour areas known as Tres Amigos, San Pablo, La Union and La Purisima. Additionaldrilling will improve sample density and likely to expand this resource.Preliminary ‘bulk sample’ metallurgical work from at least three separate areasincluding the Rosarito mill returned encouraging recoveries between eighty toninety percent of the free gold. Recent production at San Pablo confirms encouraging grades of greater than 20grams per tonne gold and recoveries of greater than 85 % in small scale.Other areas and observations from the San José de Gracia property not studied in thisreport but worthy of mention include; Gold grades can also be carried within the mineralized halo adjacent to theprincipal veins as quartz -chlorite stock work and it is this type ofmineralization that may hold the greatest potential on the property .Additional to vein- hosted gold mineralization, broad zones of un-mineralized clayalteration, developed southwest of the main mineralized trends near the town ofSan José de Gracia, may overlie lower-grade, disseminated gold mineralization atdepth.Current geological work at San José de Gracia covers only two percent of the totalclaim holdings, suggesting that the opportunity to find other mineralized ‘grassroots’targets is very good.55 | P a g e

23. RECOMMENDATIONSSan José de Gracia Project - MEXICOListed below are several important local and regional targets that should be considered forany future work program at the San José de Gracia property;23.1 San Pablo AreaSurvey exact underground drifts and stopes and incorporate any new chip samplinginto the database at San Pablo so future drilling can target higher grade shoots asaccurately as possible.Eight drill holes, labelled A thru H (1220 meters) are recommended to infill areasnot included in the resource estimate. These holes would target zones above andbelow the current underground workings and would improve sample density andlikely enhance the current resource. These proposed holes are listed in Table 11.When the current resource at San Pablo requires a higher classification categorywith tighter 25 meter infill drilling, the QA/QC needs to be addressed on the threesets of standards used as inserts into the initial 2007-2008 drilling programs.Statistical work on assays from standard SG-31, SP-37 and OxL-51 are 5.9%, 7.1%and 6.8% above or below two standard deviation of the norm respectively. Many ofthe affected ‘batches’ will have to be pulled and pulps re -assayed. Several blanksand duplicates are also in need of re-assay and are all highlighted in the QA/QCportion of section 13 of this report. Since the completion of this report the authorunderstands that some if not all of the quality control issues during the 1997, 2007and 2008 drill programs were addressed. This new quality assurance / qualitycontrol information will have to be substantiated.23.2 Tres Amigos AreaAn improved quality assurance / quality control program must be implemented atTres Amigos. The current ‘inferred resource’ at Tres Amigos has little supportfrom any previous quality control programs from 1997 and no support fromrecent check assays on core pulps. It is recommended at least six historical drillholes (approx 975 meters) be twinned and results used to compare with assay resultsfrom 1997. Proposed holes would include;Tres Amigos vein – twin holes 97-007, 97-013, and 97-041Orange Tree vein – twin holes 97-039, 97-044, and 97-045 Tres Amigos will require re-assay work on the standard inserts during the 2007-2008 program. Statistical work on assays from standard SG-31, SP- 37 and OxL-51are 5.9%, 7.1% and 6.8% respectively above or below two standard deviation ofthe mean. Many of the affected ‘batches’ need to be pulled and pulps re - assayed.This involves at least six holes from the 2007-2008 drill campaign. Since the56 | P a g e

San José de Gracia Project - MEXICOcompletion of this report the author understands that some if not all of the qualitycontrol issues during the 1997, 2007 and 2008 drill programs were addressed.This new QA/QC information will have to be substantiated.Because surface access is very difficult and the structures hosting goldmineralization very complex, consider designing underground drill drifts to test forgold mineralization at the junction of the two vein structures and along th eirmineralized flanks. For future consideration only and cost estimates for this workhave not been included in this report.23.3 La Prieta Type – Sediment hosted gold targetsTwo drill holes from the 1997 and 2007 campaigns returned excellent ore grade interceptsthat justify follow-up drilling (holes 97-047 and 07-009). The high grade nature of someof the ‘flat lying’ gold veins hosted in the deeper Carboniferous sediment package ,similar to known gold veins at the La Prieta Mine (historical estimate of 215,000 oz. Au),strongly supports drilling a 15m step out hole from the same collar location to help identifyother blind ore shoots in a similar environment.Use the 3D model from new survey data of the old stopes at La Prieta as a possibleguide for the orientation and size of other similar bodies found in the sediments.San Pablo Area - Hole 07-009 (8.24 g/t Au over 3.09m, from 167.4 to 170.55 metershole). This deeper intercept will be tested by ‘proposed’ San Pablo infill hole G.Tres Amigos - Hole 97-047 (7.51 g/t Au over 5.85m, from 124.9 to 132 meters downhole). Proposed 200 meter hole.23.4 Proximity to Past Producing minesSeveral drill holes from a recent campaign have intersected high-grade gold / silver /copper mineralization close to old workings and past producing mines (La Purisima –471,000 oz. Au - historical). These gold intercepts are hosted in the Lower Volcanic Groupand above the Carboniferous sediments. A similar approach of short 15 meter ‘step out’drilling from 5 different collar locations will identify other high grade gold shoots withvariable orientations.La Purisima Area – Hole 07-021 (75.9 g/t Au, 76 g/t Ag, 1.6% Cu over 2.10 m from158.7 to 160.8 meters down hole). Proposed 200 meter hole. La Purisima Area - Hole 07-39 (10.93 g/t Au over 3.25 m from 197.55 to 200.80meters down hole). Proposed 250 meter hole.57 | P a g e

San José de Gracia Project - MEXICOLa Purisima Area – Hole 08-068 (18.16 g/t Au over 1.6 m from 135.4 to 137 metersdown hole). Proposed 180 meter hole. La Union Area – Hole 08-076 (36 g/t Au, 47 g/t Ag, 1.0% Zn over 2.10m from 32.75to 34.85 meters down hole). This drill hole is located approximately 100 metersdown slope and possibly down plunge of the old La Union mine where previous chipsampling by Sullivan and MacFarlane returned assays up to 200 g/t Au. Proposed75 meter hole.La Ceceña Area – Hole 08-104 (26.2 g/t Au, 327 g/t Ag, 1% Cu over 1.35m from67.45 to 68.80 meters down hole). Proposed 90 meter hole.23.5 Regional Exploration TargetsInvestigate several multispectral iron oxide (FeO) and clay alteration anomaliesalong boundary structures, especially 14 and 16 kilometres northeast of San José deGracia near an area known as Aqua Caliente de Peria and Las Higueras de AquaCaliente respectively. Prospect, map and design the collection of stream sedimentsamples on a 500 meter sample spacing, reducing to a 200 meter grid where rockslook favourable.Investigate strong gold stream sediment anomalies from work completed byDynaMexico in 2006.Investigate the sources for the strong gold anomalies in rock chips collected in 2007 and2008.Investigate zones of precious metal mineralization known as “Potrero de Vargas(Au, Ag), located 9.3kilometres southwest of San José de Gracia inside the La Noriaclaim block (Au, Ag, Cu) located 15 kilometres south southeast of San José deGracia and Sierrita de German (Au, Ag, Cu) located on the boundary of the claimblock roughly 24 kilometres southeast of the village. These have been documentedby newly released 1:50,000 government mapping from 2008.Collect and compile any old ‘stope’ maps of the past producing mines and identifythe repetition or frequency of ore shoots to guide new drill holes in the future.Table 30 Cost EstimateItemEstimated cost $Can (all in cost)Core drilling, 20 holes (3200m) $800,000Regional exploration $150,000Total $950,00058 | P a g e

San José de Gracia Project - MEXICOAUTHOR CERTIFICATEI, Jim Cuttle, of the Municipality of Whistler, British Columbia, Canada, do certify that;I work as a consulting geologist with a home office at 86 Cloudburst Road, Black TuskVillage, Whistler, British Columbia, Canada. V0N-1B1.I am a graduate of the University of New Brunswick (1980) with a Bachelor of ScienceDegree in Geology.I have practiced my geological profession continuously for the last twenty nine years inthe capacity of exploration and consulting geologist. My work has included projectmanagement, mineral property assessment, data compilation and project generation forvarious public and private mineral exploration companies in Canada and Internationally.I am a registered member in good standing of The Association of Professional Engineers andGeoscientists of the Province of British Columbia (19313) and have been since July 1992.I am responsible for all parts of this report titled “<strong>43</strong>-<strong>101</strong> Technical Report on the San Joséde Gracia Project and Resource Estimate on the Tres Amigos, San Pablo, La Union and LaPurisima Zones, NW Sinaloa, Mexico”, (Technical Report) compiled and written for GoldgroupResources Inc., and dated August 21, 2009, excluding Section 20 on “Mineral ResourceEstimate, Tres Amigos, San Pablo, La Union, La Purisima”I certify that I have read National Instrument <strong>43</strong>-<strong>101</strong> and this Technical Report at San Joséde Gracia has been prepared in compliance with this National Instrument.I have not previously worked on this property. I am independent of the issuer as described in Section 1.4 of <strong>NI</strong> <strong>43</strong>-<strong>101</strong>.This Technical Report on the San José de Gracia Property is based on the author’s dataresearch and site visits to the property from May 21 to May 24, 2009 and subsequentpreparation of this report.As of the date of this certificate, to the best of my knowledge, information and belief, thetechnical report contains all scientific and technical information that is required to bedisclosed to make the technical report not misleading.I consent to the filing of the Technical Report with any stock exchange and other regulatoryauthority and any publication by them, including electronic publication in the publiccompany files on their websites accessible by the public.Dated this 21 st day of August, 2009“Jim Cuttle”________________________Jim F. Cuttle, B.Sc., P.Geo.59 | P a g e

San José de Gracia Project - MEXICOAUTHOR CERTIFICATEI, G.H. Giroux, of 982 Broadview Drive, North Vancouver, British Columbia, do hereby certify that:I am a consulting geological engineer with an office at #1215 - 675 West Hastings Street,Vancouver, British Columbia.I am a graduate of the University of British Columbia in 1970 with a B.A. Sc. and in 1984 with aM.A. Sc., both in Geological Engineering.I am a member in good standing of the Association of Professional Engineers and Geoscientistsof the Province of British Columbia.I have practiced my profession continuously since 1970. I have had over 30 years experience inbase and precious metal resource estimation and in that time have worked on many narrow veindeposits including Eldorado’s Efemcukuru, Kimbers Monterde and International Tower Hill’sLMS among others.I have read the definition of “qualified person” set out in National Instrument <strong>43</strong>-<strong>101</strong> and certifythat by reason of education, experience, independence and affiliation with a professionalassociation, I meet the requirements of an Independent Qualified Person as defined in NationalPolicy <strong>43</strong>-<strong>101</strong>.This report titled “<strong>43</strong>-<strong>101</strong> Technical Report on the San José de Gracia Project and ResourceEstimate on the Tres Amigos, San Pablo, La Union and La Purisima Zones , NW Sinaloa, Mexico”dated August 21, 2009 (“Technical Report”) is based on a study of the data and literatureavailable on the San José de Gracia Project. I am responsible for the Mineral Resource Estimatesection of this report. I have not visited the property.I have not previously worked on this property.As of the date of this certificate, to the best of my knowledge, information and belief, the technicalreport contains all scientific and technical information that is required to be disclosed to makethe technical report not misleading. I am independent of the issuer applying all of the tests in section 1.4 of National Instrument <strong>43</strong>-<strong>101</strong>.I have read National Instrument <strong>43</strong>-<strong>101</strong> and Form <strong>43</strong>-<strong>101</strong>F1, and the Technical Report has beenprepared in compliance with that instrument and form.Dated this 21st day of August, 2009“G.H. Giroux”________________________G. H. Giroux, P.Eng., MASc.60 | P a g e

San José de Gracia Project - MEXICOREFERENCESBuchanan, L.J., 1981 Precious Metal Deposits associated with Volcanic Environments in theSouthwest; in Relations of Tectonics to Ore Deposits in the Southern Cordillera; Arizona GeologicalSociety Digest, Vol 14, pages 237 – 262.Corbett, G.J., 2007 Controls to Low Sulphidation epithermal Au-Ag mineralization. PO Box 282Willoughby, NSW, Australia.Childe, F., Kaip, A., 2001 San José de Gracia Gold Project. Summary Report prepared forDynaResource, Inc., Irving, Texas.CIM, 2005. CIM Definition Standards – For Mineral Resources and Mineral Reserves. Prepared bythe CIM Standing Committee on Reserve Definitions. Adopted by CIM Council on December 11,2005.Consejo de Recursos Minerales (“CRM”), 1992 Geological – Mining in the State of Sinaloa,published by the Secretaria de Energia, Minas e Industria Paraestatal. 159p.Heald, P., Foley, N.K and Hayba, D.O.. 1987 Comparitive Anatomy of Volcanic-Hosted EpithermalDeposits: Acid-Sulphate and Adularia Sericite Types; Economic Geology, Vol 82, pages 1-2 6.Henderson, W.C., 2000 Internal discussions and notes on bulk sampling and metallurgicaltest work at San Pablo and Tres Amigos properties. Internal report to DynaResource, Inc., Irving,Texas.Kaip, A,. 2000 La Purisma Compilation and Resource Potential. Prepared for DynaResource, Inc.,Irving , Texas.Poliquin, M., 2006 Low-Sulphidation epithermal quartz adularia gold silver veins and the ElFuego Project, Mexico. Almaden Minerals, Vancouver, B.C.Pressacco, R., 2009. Technical Report for the San José de Gracia Project and Resource estimate forthe San Pablo and Tres Amigos areas, Sinaloa State, Mexico. Micon International Limited. Incompleteinternal report for Goldgroup Resources Inc.Solano-Rico, B., 2005 Technical Report on the Cuitaboca Exploration Project. Prepared for MineraEl Pilón, S.A. de C.V., Guadalajara, Jal., Mexico.Sullivan, J.R, MacFarlane, R., 2006. A Technical Review of the San José de Gracia Gold Property,Sinaloa State, Mexico. Watts, Griffis and McQuat Limited. Draft internal report for GoldgroupResources Inc.61 | P a g e

Appendix ISan Pablo – Drill Plans and Sections

Appendix IITres Amigos – Drill Plans and Sections

San José de Gracia Project - MEXICOAppendix IIIGoldgroup - Standard Inserts for QA/QC, 2007 - 2008

Batch Shipments with> or < 2Standard DeviationStandard insertSP-37, SG-31, OxL-51No sample# Au Batch/file Hole Standard Lab Re-check1 775 6,060 07E1777 07-009 OxL-51 IPL2 991 5,620 07E2158 07-010 OxL-51 IPL yes13 1198 5,500 07D1638 07-016 OxL-51 IPL16 1267 5,345 07E1846 07-017 OxL-51 IPL18 1375 5,511 07E1842 07-019 OxL-51 IPL19 1427 5,662 07E1842 07-019 OxL-51 IPL57 2735 5,650 07K5749 07-040 OxL-51 IPL35 4558 6,039 07K5704 07-028 OxL-51 IPL198 12606 6,214 08-338-02491-01 08-089 OxL-51 Inspect yes200 12868 6,172 08-338-02560-01 08-091 OxL-51 Inspect201 13004 5,623 08-338-02559-01 08-092 OxL-51 Inspect202 13120 5,554 08-338-02577-01 08-093 OxL-51 Inspect yes205 13515 5,604 08-338-02749-01 08-096 OxL-51 Inspect206 13526 5,486 08-338-02749-01 08-096 OxL-51 Inspect207 13686 5,623 08-338-02836-01 08-097 OxL-51 Inspect210 13848 5,598 08-338-02837-01 08-098 OxL-51 Inspect241 16008 6,160 08K5339 08-117 OxL-51 IPL48 2725 926 07K5749 07-040 SG-31 IPL58 7272 900 08B0810 08-045 SG-31 IPL59 7284 917 08B0810 08-045 SG-31 IPL84 7626 906 08C1411 08-054 SG-31 IPL132 12472 908 08-338-02489-01 08-088 SG-31 Inspect140 12880 916 08-338-02560-01 08-091 SG-31 Inspect145 13076 922 08-338-02559-01 08-092 SG-31 Inspect154 13480 908 08-338-02690-01 08-095 SG-31 Inspect162 13767 910 08-338-02836-01 08-097 SG-31 Inspect163 13804 912 08-338-02836-01 08-097 SG-31 Inspect159 14791 1072 08-338-02691-01 08-096 SG-31 Inspect166 14826 654 08-338-02834-01 08-098 SG-31 Inspect167 14836 924 08-338-02834-01 08-098 SG-31 Inspect7 1580 18,755 07E2149 07-011 SP-37 IPL8 1590 18,671 07F2442 07-012 SP-37 IPL yes12 1802 18,647 07F2266 07-013 SP-37 IPL79 5166 18,893 08B0605 08-049 SP-37 IPL74 5493 18,855 08B0836 08-046 SP-37 IPL81 5731 18,738 08C1087 08-051 SP-37 IPL yes65 7126 18,764 08B0586 08-044 SP-37 IPL67 7191 18,659 08B0586 08-044 SP-37 IPL109 7929 18,630 08F2951 08-059 SP-37 IPL159 8783 18,620 08G3105 08-078 SP-37 IPL185 12516 17,140 08-338-02489-01 08-088 SP-37 Inspect186 12534 19,140 08-338-02489-01 08-088 SP-37 Inspect192 12760 17,100 08-338-02490-01 08-090 SP-37 Inspect197 13018 17,116 08-338-02559-01 08-092 SP-37 Inspect199 13103 17,177 08-338-02559-01 08-092 SP-37 Inspect201 13156 17,554 08-338-02577-01 08-093 SP-37 Inspect205 13410 17,1<strong>43</strong> 08-338-02690-01 08-095 SP-37 Inspect212 13594 18,880 08-338-02749-01 08-096 SP-37 Inspect214 13658 17,520 08-338-02749-01 08-096 SP-37 Inspect218 13862 17,280 08-338-02837-01 08-098 SP-37 Inspect219 13875 19,120 08-338-02837-01 08-098 SP-37 Inspect221 13919 18,720 08-338-02837-01 08-098 SP-37 Inspect209 14765 17,485 08-338-02626-01 08-095 SP-37 InspectSG-31 SP-37 OxL-51SD 33 252 87-2SD 930 17596 5676+2SD 1062 18604 6024mean 996 18100 5850San Jose de Gracia2007, 2008 drilling 13/06/2009

19,000Control Chart for Standard SP-37Recommended Value 18,100 ppb Au +/- 252 ppb (1 SD)DDH SJG-07-09 to SJG-08-126(n=323)18,500Gold Value (ppb Au)18,00017,50017,0000 50 100 150 200 250 300 350SampleStandard 2 (SP-37) Recommended Value +3 SD +2 SD -2 SD -3 SD

1125Control Chart, Standard SG-31Recommended Value 996.00 ppb Au +/- 33 ppb (1SD)DDH SJG-07-08 to SJG-08-126(n=254)1075Gold Value (ppb Au)10259759258750 50 100 150 200 250SampleStandard 1 (SG-31) +3 SD +2 SD -2 SD -3 SD Recommended Value

6300Control Chart for Standard OxL51Recommended Value 5,850 ppb Au +/- 87 ppb Au (1SD)DDH SJG-07-09 to SJG-08-126(n= 262)62006100Gold Grade (ppb Au)60005900580057005600550054000 50 100 150 200 250SampleRecommended Value Standard 3 (OxL51) +3 SD -2 SD -3 SD +2 SD

Duplicate Sample Results, 17 Outliers Removed (n=226)DDH SJG-07-09 to SJG-08-126400350300y = 0.9995xR 2 = 0.9762Second Assay (ppb Au)2502001501005000 50 100 150 200 250 300 350 400Original Assay (ppb Au)Sample Point Expected Value +50 ppb Constant Variance -50 ppb Constant Variance Linear (Sample Point)

Control Chart for Blank Material AuBlank21DDH SJG-07-09 to SJG-08-126 (n=417)100908070Au (ppb)60504030201000 50 100 150 200 250 300 350 400 450Sample Number

San José de Gracia Project - MEXICOAppendix IVSan Pablo / Tres Amigos – drill core pulp checks – ALS Chemex 2009

Selected checks of drill core Pulps - Tres Amigos / San PabloSAMPLE SAMPLE-ID Au orig assay Orig lab holeALS-CS-85 85 23.400 17.500 IPL 07-002ALS-CS-417 417 0.1<strong>43</strong> 0.117 IPL 07-003ALS-CS-707 707 0.464 0.449 IPL 07-004ALS-CS-708 708 0.641 0.612 IPL 07-004ALS-CS-738 738 0.098 0.119 IPL 07-009ALS-CS-771 771 0.109 0.110 IPL 07-009ALS-CS-848 848 0.032 0.214 IPL 07-007ALS-CS-923 923 0.069 0.068 IPL 07-008ALS-CS-947 947 0.369 0.358 IPL 07-008ALS-CS-1024 1024 0.113 0.134 IPL 07-015ALS-CS-1077 1077 0.087 0.104 IPL 07-015ALS-CS-1118 1118 0.130 0.209 IPL 07-016ALS-CS-1193 1193 0.<strong>101</strong> 0.091 IPL 07-016ALS-CS-1321 1321 1.180 1.200 IPL 07-018ALS-CS-3375 3375 0.387 0.368 IPL 08-068ALS-CS-4601 4601 6.140 5.400 IPL 07-028ALS-CS-4746 4746 1.965 2.160 IPL 07-029ALS-CS-5608 5608 2.320 2.610 IPL 08-048ALS-CS-6276 6276 7.060 3.110 IPL 08-060ALS-CS-6447 6447 0.104 0.097 IPL 08-062ALS-CS-11122 11122 44.600 39.500 IPL 08-084ALS-CS-14807 14807 17.200 20.500 IPL 08-097ALS-CS-14966 14966 2.650 2.660 IPL 08-110ALS-CS-15703 15703 11.450 12.960 IPL 08-115ALS-CS-15925 15925 1.205 1.050 IPL 08-117Total amount of checks - 169Checks by ALS ChemexOriginal Lab - IPL

List of Pulp checks sent toALS Chemex Labs, 2009Certificado De HastaNumerode Muestras07D1318 838 846 907E2158 1726 1734 907F2442 1587 1596 1007J5028 1887 1895 907K5444 <strong>43</strong>15 <strong>43</strong>33 1907K5555 4471 4481 1107L5954 4864 4870 708B<strong>101</strong>2 5601 5613 1308C1087 5723 5742 2008F3024 6270 6282 13Inspectorate 08-338-02491-01 12690 12697 8Inspectorate 08-338-02490-01 12825 12836 12Inspectorate 08-338-02577-01 13189 13192 mas 14723 y 14724 608I4523 14457 14469 1308I4523 14483 14503 2108J4884 14951 14975 2508J4884 15015 15020 608J4883 15155 15161 708J4883 15173 15183 1108J4933 15302 15309 808J5034 15338 153<strong>43</strong> 608J5034 15<strong>43</strong>6 15447 1208K5209 15,539 15,545 708K5207 15667 15673 708K5207 15694 15708 1508K5368 15778 15783 608K5368 15810 15818 908K5339 15883 15887 508K5339 15955 15961 708K5418 16,032 16,070 39Total:- 350with certificate number and amount of pulps per certificate. Total 169 of 350 requested

San José de Gracia Project - MEXICOAppendix VCheck assays, chip samples and drill core – J. Cuttle 2009

Client:Jim Cuttle Geological86 Cloudburst Rd.Whistler BC V0N 1B1 Canada1020 Cordova St. East Vancouver BC V6A 4A3 CanadaPhone (604) 253-3158 Fax (604) 253-1716Acme Analytical Laboratories (Vancouver) Ltd.www.acmelab.comSubmitted By:Receiving Lab:Received:Report Date:Page:Jim CuttleCanada-VancouverMay 26, 2009June 01, 2009CERTIFICATE OF ANALYSIS VAN09001851.11 of 2CLIENT JOB INFORMATIONSAMPLE PREPARATION AND ANALYTICAL PROCEDURESProject:Shipment ID:P.O. NumberNumber of Samples:San Jose de Gracia3MethodCodeR200Number ofSamples3Code DescriptionCrush split and pulverize drill core to 200 meshTestWgt (g)ReportStatusG6 3Fire Assay fusion Au by ICP-ES 30 CompletedSAMPLE DISPOSALDISP-PLPDispose of Pulp After 90 daysDISP-RJTDispose of Reject After 90 daysADDITIONAL COMMENTSAcme does not accept responsibility for samples left at the laboratory after 90days without prior written instructions for sample storage or return.Invoice To:Jim Cuttle Geological86 Cloudburst Rd.Whistler BC V0N 1B1CanadaCC:This report supersedes all previous preliminary and final reports with this file number dated prior to the date on this certificate. Signature indicates final approval; preliminary reports are unsigned and should be used for reference only.All results are considered the confidential property of the client. Acme assumes the liabilities for actual cost of analysis only.“*” asterisk indicates that an analytical result could not be provided due to unusually high levels of interference from other elements.

Client:Jim Cuttle Geological86 Cloudburst Rd.Whistler BC V0N 1B1 Canada1020 Cordova St. East Vancouver BC V6A 4A3 CanadaPhone (604) 253-3158 Fax (604) 253-1716Acme Analytical Laboratories (Vancouver) Ltd.www.acmelab.comProject:Report Date:Page:San Jose de GraciaJune 01, 2009CERTIFICATE OF ANALYSIS VAN09001851.1Method WGHT G6AnalyteUnitMDLWgtkgAugm/mt0.01 0.01JC-16045 Drill Core 1.03 10.84JC-16047 Drill Core 1.15 9.97JC-4477 Drill Core 1.80 26.932 of 2Part1This report supersedes all previous preliminary and final reports with this file number dated prior to the date on this certificate. Signature indicates final approval; preliminary reports are unsigned and should be used for reference only.

Client:Jim Cuttle Geological86 Cloudburst Rd.Whistler BC V0N 1B1 Canada1020 Cordova St. East Vancouver BC V6A 4A3 CanadaPhone (604) 253-3158 Fax (604) 253-1716Acme Analytical Laboratories (Vancouver) Ltd.www.acmelab.comProject:Report Date:Page:San Jose de GraciaJune 01, 2009QUALITY CONTROL <strong>REPORT</strong> VAN09001851.1Reference MaterialsWGHTWgtkgG6Augm/mt0.01 0.01STD OXH55 Standard 1.36STD OXK69 Standard 3.68STD OXH55 Expected 1.282STD OXK69 Expected 3.583BLK Blank

Client:Jim Cuttle Geological86 Cloudburst Rd.Whistler BC V0N 1B1 Canada1020 Cordova St. East Vancouver BC V6A 4A3 CanadaPhone (604) 253-3158 Fax (604) 253-1716Acme Analytical Laboratories (Vancouver) Ltd.www.acmelab.comSubmitted By:Receiving Lab:Received:Report Date:Page:Jim CuttleCanada-VancouverMay 26, 2009June 04, 2009CERTIFICATE OF ANALYSIS VAN09001851.21 of 2CLIENT JOB INFORMATIONProject:San Jose de GraciaShipment ID:P.O. NumberNumber of Samples: 3SAMPLE DISPOSALSAMPLE PREPARATION AND ANALYTICAL PROCEDURESMethodCodeR200Number ofSamples3Code DescriptionCrush split and pulverize drill core to 200 meshTestWgt (g)ReportStatusG6 3Fire Assay fusion Au by ICP-ES 30 CompletedG6 Grav 2Fire assay Au by gravimetric finish 30 CompletedDISP-PLPDISP-RJTDispose of Pulp After 90 daysDispose of Reject After 90 daysADDITIONAL COMMENTSVersion 2 : G6-Au gravimetric included.Acme does not accept responsibility for samples left at the laboratory after 90days without prior written instructions for sample storage or return.Invoice To:Jim Cuttle Geological86 Cloudburst Rd.Whistler BC V0N 1B1CanadaCC:This report supersedes all previous preliminary and final reports with this file number dated prior to the date on this certificate. Signature indicates final approval; preliminary reports are unsigned and should be used for reference only.All results are considered the confidential property of the client. Acme assumes the liabilities for actual cost of analysis only.“*” asterisk indicates that an analytical result could not be provided due to unusually high levels of interference from other elements.

Client:Jim Cuttle Geological86 Cloudburst Rd.Whistler BC V0N 1B1 Canada1020 Cordova St. East Vancouver BC V6A 4A3 CanadaPhone (604) 253-3158 Fax (604) 253-1716Acme Analytical Laboratories (Vancouver) Ltd.www.acmelab.comProject:Report Date:Page:San Jose de GraciaJune 04, 2009CERTIFICATE OF ANALYSIS VAN09001851.2Method WGHT G6 G6AnalyteUnitMDLWgt Au Aukg gm/mt gm/mt0.01 0.01 0.17JC-16045 Drill Core 1.03 10.84 7.73JC-16047 Drill Core 1.15 9.97 N.A.JC-4477 Drill Core 1.80 26.93 24.442 of 2Part1This report supersedes all previous preliminary and final reports with this file number dated prior to the date on this certificate. Signature indicates final approval; preliminary reports are unsigned and should be used for reference only.

Client:Jim Cuttle Geological86 Cloudburst Rd.Whistler BC V0N 1B1 Canada1020 Cordova St. East Vancouver BC V6A 4A3 CanadaPhone (604) 253-3158 Fax (604) 253-1716Acme Analytical Laboratories (Vancouver) Ltd.www.acmelab.comProject:Report Date:Page:San Jose de GraciaJune 04, 2009QUALITY CONTROL <strong>REPORT</strong> VAN09001851.2Pulp DuplicatesWGHT G6 G6Wgt Au Aukg gm/mt gm/mt0.01 0.01 0.17JC-4477 Drill Core 1.80 26.93 24.44REP JC-4477 QC 23.95Reference MaterialsSTD OXH55 Standard 1.36STD OXK69 Standard 3.68STD OXP61 Standard 14.96STD OXP61 Standard 15.14STD SQ18 Standard 29.96STD OXH55 Expected 1.282STD OXK69 Expected 3.583STD OXP61 Expected 14.917STD SQ18 Expected 30.49BLK Blank

Client:Jim Cuttle Geological86 Cloudburst Rd.Whistler BC V0N 1B1 Canada1020 Cordova St. East Vancouver BC V6A 4A3 CanadaPhone (604) 253-3158 Fax (604) 253-1716Acme Analytical Laboratories (Vancouver) Ltd.www.acmelab.comSubmitted By:Receiving Lab:Received:Report Date:Page:Jim CuttleCanada-VancouverMay 26, 2009June 01, 2009CERTIFICATE OF ANALYSIS VAN09001850.11 of 2CLIENT JOB INFORMATIONSAMPLE PREPARATION AND ANALYTICAL PROCEDURESProject:Shipment ID:P.O. NumberNumber of Samples:San Jose de Gracia2MethodCodeR200Number ofSamples2Code DescriptionCrush, split and pulverize rock to 200 meshTestWgt (g)ReportStatusG6 2Fire Assay fusion Au by ICP-ES 30 CompletedSAMPLE DISPOSALDISP-PLPDispose of Pulp After 90 daysDISP-RJTDispose of Reject After 90 daysADDITIONAL COMMENTSAcme does not accept responsibility for samples left at the laboratory after 90days without prior written instructions for sample storage or return.Invoice To:Jim Cuttle Geological86 Cloudburst Rd.Whistler BC V0N 1B1CanadaCC:This report supersedes all previous preliminary and final reports with this file number dated prior to the date on this certificate. Signature indicates final approval; preliminary reports are unsigned and should be used for reference only.All results are considered the confidential property of the client. Acme assumes the liabilities for actual cost of analysis only.“*” asterisk indicates that an analytical result could not be provided due to unusually high levels of interference from other elements.

Client:Jim Cuttle Geological86 Cloudburst Rd.Whistler BC V0N 1B1 Canada1020 Cordova St. East Vancouver BC V6A 4A3 CanadaPhone (604) 253-3158 Fax (604) 253-1716Acme Analytical Laboratories (Vancouver) Ltd.www.acmelab.comProject:Report Date:Page:San Jose de GraciaJune 01, 2009CERTIFICATE OF ANALYSIS VAN09001850.1Method WGHT G6AnalyteUnitMDLWgtkgAugm/mt0.01 0.01JC-1 Rock 1.67JC-2 Rock 0.752 of 2Part1This report supersedes all previous preliminary and final reports with this file number dated prior to the date on this certificate. Signature indicates final approval; preliminary reports are unsigned and should be used for reference only.

Client:Jim Cuttle Geological86 Cloudburst Rd.Whistler BC V0N 1B1 Canada1020 Cordova St. East Vancouver BC V6A 4A3 CanadaPhone (604) 253-3158 Fax (604) 253-1716Acme Analytical Laboratories (Vancouver) Ltd.www.acmelab.comProject:Report Date:Page:San Jose de GraciaJune 01, 2009QUALITY CONTROL <strong>REPORT</strong> VAN09001850.1Reference MaterialsWGHTWgtkgG6Augm/mt0.01 0.01STD OXH55 Standard 1.36STD OXK69 Standard 3.68STD OXH55 Expected 1.282STD OXK69 Expected 3.583BLK Blank

San José de Gracia Project - MEXICOAppendix VIAll Drill collar locations at San José de Gracia – G. Giroux, 2009

San José de Gracia Project - MEXICOLISTING OF DRILL HOLESHOLE EASTING NORTHING ELEVATION HLENGTH AREA TYPESJG07-001 212944.31 2896203.02 596.41 129.20 La_Purisima DDHSJG07-002 212887.86 2896286.70 590.63 167.50 La_Purisima DDHSJG07-003 212800.63 2896342.65 589.84 185.85 La_Purisima DDHSJG07-004 212871.18 2897300.88 653.50 169.90 San_Pablo DDHSJG07-005 212910.64 2896998.60 722.33 197.60 San_Pablo DDHSJG07-006 213468.02 2897651.84 627.61 220.40 La_Ceceña DDHSJG07-007 212927.66 2897110.45 724.18 179.40 San_Pablo DDHSJG07-008 212925.09 2897306.13 647.11 149.60 San_Pablo DDHSJG07-009 212856.08 2897252.38 679.18 180.75 San_Pablo DDHSJG07-010 212855.28 2897253.07 679.36 161.65 San_Pablo DDHSJG07-011 212991.02 2897214.02 689.00 148.10 San_Pablo DDHSJG07-012 212990.37 2897215.30 688.94 103.70 San_Pablo DDHSJG07-013 213284.34 2897915.99 633.59 112.60 La_Ceceña DDHSJG07-014 213645.95 2897549.00 575.22 94.90 La_Ceceña DDHSJG07-015 212867.03 2896328.04 591.44 166.70 La_Purisima DDHSJG07-016 212868.76 2896325.76 590.00 174.50 La_Purisima DDHSJG07-017 212865.86 2896328.34 590.06 137.70 La_Purisima DDHSJG07-018 212891.16 2896015.66 536.12 151.20 La_Purisima DDHSJG07-019 212891.92 2896015.64 536.31 147.65 La_Purisima DDHSJG07-020 213064.<strong>43</strong> 2895722.65 462.26 156.20 La_Purisima DDHSJG07-021 212683.33 2895994.67 544.72 191.25 La_Purisima DDHSJG07-022 212683.33 2895994.67 544.72 198.85 La_Purisima DDHSJG07-023 212929.54 28970<strong>43</strong>.99 723.46 208.90 San_Pablo DDHSJG07-024 213012.36 2897039.80 740.75 255.50 San_Pablo DDHSJG07-025 213013.26 2897039.52 740.67 201.15 San_Pablo DDHSJG07-026 212963.82 2897168.<strong>43</strong> 704.79 201.30 San_Pablo DDHSJG07-027 212838.50 2897157.54 726.97 258.10 San_Pablo DDHSJG07-028 212847.52 2897204.46 697.82 210.00 San_Pablo DDHSJG07-029 212846.75 2897205.12 697.81 251.30 San_Pablo DDHSJG07-030 212810.72 2897089.00 695.53 259.50 San_Pablo DDHSJG07-031 212811.64 2897088.57 695.57 213.35 San_Pablo DDHSJG07-032 212810.45 2896994.21 698.30 261.95 San_Pablo DDHSJG07-033 212811.32 2896993.92 698.36 200.90 San_Pablo DDHSJG07-034 212874.31 2897300.05 653.94 251.05 San_Pablo DDHSJG07-035 212752.12 2895814.02 547.48 254.10 La_Purisima DDHSJG07-036 212711.12 2895919.86 549.32 244.40 La_Purisima DDHSJG07-037 212710.66 2895919.53 549.30 253.50 La_Purisima DDHSJG07-038 212769.66 2895997.51 501.81 205.65 La_Purisima DDHSJG07-039 212845.87 2895989.02 511.68 206.85 La_Purisima DDHSJG07-040 212675.32 2896049.04 541.44 308.05 La_Purisima DDHSJG07-041 212674.86 2896048.85 541.45 309.65 La_Purisima DDHSJG07-042 212698.91 2896142.46 547.49 306.65 La_Purisima DDHSJG08-0<strong>43</strong> 212776.<strong>43</strong> 2895751.15 529.46 300.65 La_Purisima DDHSJG08-044 212807.54 2895454.75 534.25 301.40 La_Purisima DDHSJG08-045 213210.58 2896136.82 573.58 201.10 La_Purisima DDHSJG08-046 212731.29 2897182.66 711.86 269.35 San_Pablo DDHSJG08-047 213219.37 2895882.94 535.90 252.85 La_Purisima DDHSJG08-048 212715.97 2897128.11 708.87 269.70 San_Pablo DDHSJG08-049 212755.65 2897296.84 670.14 258.25 San_Pablo DDHSJG08-050 212750.78 2897229.09 695.41 244.55 San_Pablo DDHSJG08-051 212700.19 2897073.14 685.31 231.80 San_Pablo DDHSJG08-052 213490.02 2898016.20 677.93 205.40 Tres_Amigos DDHSJG08-053 212630.73 2897151.03 689.71 302.20 San_Pablo DDH

San José de Gracia Project - MEXICOHOLE EASTING NORTHING ELEVATION HLENGTH AREA TYPESJG08-054 213264.55 2897713.64 659.19 209.50 La_Ceceña DDHSJG08-055 212791.23 2896815.23 637.32 212.45 La_Union DDHSJG08-056 212686.22 2897003.36 676.79 248.10 San_Pablo DDHSJG08-057 212846.82 2896836.32 662.77 203.35 La_Union DDHSJG08-058 212645.49 2897251.49 693.33 312.70 San_Pablo DDHSJG08-059 212779.60 2896761.77 653.19 218.95 La_Union DDHSJG08-060 212618.34 2897090.49 678.09 296.55 San_Pablo DDHSJG08-061 212740.77 2896701.93 622.90 218.90 La_Union DDHSJG08-062 212673.34 2896960.19 671.51 264.80 San_Pablo DDHSJG08-063 212756.44 2895525.39 538.92 353.10 La_Purisima DDHSJG08-064 212582.44 2896992.20 662.03 282.05 San_Pablo DDHSJG08-065 212583.10 2896917.07 634.55 268.30 San_Pablo DDHSJG08-066 212691.45 2895779.54 542.82 346.00 La_Purisima DDHSJG08-067 212544.94 2897106.02 702.22 335.60 San_Pablo DDHSJG08-068 212754.75 2895814.93 547.24 255.12 La_Purisima DDHSJG08-069 212774.67 2895752.09 529.73 282.55 La_Purisima DDHSJG08-070 212747.35 2895861.51 554.23 255.12 La_Purisima DDHSJG08-071 212886.07 2895728.69 514.82 276.45 La_Purisima DDHSJG08-072 212739.20 2896703.29 622.66 227.30 La_Union DDHSJG08-073 212908.69 2895666.65 510.51 230.73 La_Purisima DDHSJG08-074 212533.90 2897063.94 701.58 364.85 San_Pablo DDHSJG08-075 212613.92 2896603.52 588.46 241.90 La_Union DDHSJG08-076 212685.46 2896670.57 603.82 274.60 La_Union DDHSJG08-077 212533.79 2897010.42 670.10 352.66 San_Pablo DDHSJG08-078 212526.45 2896492.06 572.00 222.60 La_Union DDHSJG08-079 212417.63 2897021.44 690.98 3<strong>43</strong>.51 San_Pablo DDHSJG08-080 212568.52 2896555.24 595.32 217.55 La_Union DDHSJG08-081 212421.66 2897075.23 682.75 367.89 San_Pablo DDHSJG08-082 212666.10 2895830.26 558.23 212.20 La_Purisima DDHSJG08-083 212459.68 2897106.86 676.79 346.56 San_Pablo DDHSJG08-084 212789.27 2895675.87 530.79 297.30 La_Purisima DDHSJG08-085 213068.75 2897527.12 672.44 249.02 San_Pablo DDHSJG08-086 213016.18 2897447.08 677.08 248.41 San_Pablo DDHSJG08-087 212966.67 2897389.14 676.89 249.02 San_Pablo DDHSJG08-088 212891.95 2897357.84 683.20 249.02 San_Pablo DDHSJG08-089 212751.76 2897233.88 695.10 239.88 San_Pablo DDHSJG08-090 212730.35 2897184.80 711.64 249.02 San_Pablo DDHSJG08-091 212712.45 2897120.42 708.97 252.07 San_Pablo DDHSJG08-092 212705.15 2897071.42 684.88 252.07 San_Pablo DDHSJG08-093 212685.45 2897004.72 677.40 246.05 San_Pablo DDHSJG08-094 212628.11 2897157.42 689.50 299.01 San_Pablo DDHSJG08-095 212618.57 2897089.62 677.90 256.03 San_Pablo DDHSJG08-096 2125<strong>43</strong>.47 2897108.56 702.22 344.73 San_Pablo DDHSJG08-097 212534.42 2897063.90 701.75 268.83 San_Pablo DDHSJG08-098 212550.22 2897012.16 670.24 282.55 San_Pablo DDHSJG08-099 212826.93 2895609.81 523.06 252.07 La_Purisima DDHSJG08-100 212880.76 2895565.34 511.72 236.83 La_Purisima DDHSJG08-<strong>101</strong> 213099.36 2897587.49 637.49 252.07 La_Ceceña DDHSJG08-102 213492.03 2898017.04 678.24 252.07 Tres_Amigos DDHSJG08-103 213<strong>43</strong>1.90 2897990.33 676.09 252.07 La_Ceceña DDHSJG08-104 213<strong>43</strong>0.18 2897944.25 666.66 249.97 La_Ceceña DDHSJG08-105 213338.98 2897934.12 652.28 252.07 La_Ceceña DDHSJG08-106 213338.38 2897934.70 652.20 252.07 La_Ceceña DDHSJG08-107 213247.83 2897889.<strong>43</strong> 656.06 252.07 La_Ceceña DDHSJG08-108 213248.35 2897888.87 656.07 252.07 La_Ceceña DDH

San José de Gracia Project - MEXICOHOLE EASTING NORTHING ELEVATION HLENGTH AREA TYPESJG08-109 213229.06 2897818.02 665.96 252.07 La_Ceceña DDHSJG08-110 213641.70 2898246.70 637.92 249.02 Tres_Amigos DDHSJG08-111 213641.<strong>43</strong> 2898246.02 637.85 252.07 Tres_Amigos DDHSJG08-112 213639.66 2898245.25 637.95 200.25 Tres_Amigos DDHSJG08-113 213647.60 2898219.85 636.64 200.25 Tres_Amigos DDHSJG08-114 213647.56 2898218.08 636.77 281.90 Tres_Amigos DDHSJG08-115 213695.00 2898210.74 633.56 200.10 Tres_Amigos DDHSJG08-116 213694.82 2898210.28 633.58 250.05 Tres_Amigos DDHSJG08-117 213690.90 2898114.69 621.94 251.75 Tres_Amigos DDHSJG08-118 213674.54 2898059.81 617.78 250.15 Tres_Amigos DDHSJG08-119 213687.90 2897791.01 597.80 200.25 Tres_Amigos DDHSJG08-120 212622.09 2896721.36 610.45 250.85 La_Union DDHSJG08-121 212599.97 2896691.38 623.56 94.15 La_Union DDHSJG08-122 212549.74 2896657.54 629.13 251.25 La_Union DDHSJG08-123 212490.93 2896609.76 631.64 250.70 La_Union DDHSJG08-124 212<strong>43</strong>5.35 2896554.08 623.41 250.90 La_Union DDHSJG08-125 212596.27 2896690.77 623.<strong>43</strong> 252.35 La_Union DDHSJG08-126 212542.73 2896742.97 647.61 252.35 La_Union DDHSJG92-001 212890.00 2896746.00 685.00 201.17 La_Union RCSJG92-002 213064.00 2896931.00 760.00 201.17 La_Union RCSJG92-003 213018.00 2896661.00 720.00 120.40 La_Union RCSJG92-004 213026.00 2896823.00 765.00 152.40 La_Union RCSJG92-005 213196.00 2896851.00 790.00 100.58 La_Union RCSJG92-006 213221.00 2897014.00 748.00 158.50 La_Union RCSJG92-007 213024.00 2897050.00 730.00 124.97 San_Pablo RCSJG92-008 212916.00 2897251.00 670.00 51.82 San_Pablo RCSJG92-009 213<strong>101</strong>.00 2897240.00 694.83 51.82 San_Pablo RCSJG92-010 213055.00 2897239.00 685.00 51.82 San_Pablo RCSJG92-011 212804.00 2896505.00 630.00 146.30 La_Purisima RCSJG97-001 213713.02 2898104.35 628.00 62.00 Tres_Amigos DDHSJG97-002 213713.02 2898104.35 628.00 62.50 Tres_Amigos DDHSJG97-003 213772.37 2898146.82 637.20 76.00 Tres_Amigos DDHSJG97-004 213772.37 2898146.82 637.20 73.00 Tres_Amigos DDHSJG97-005 213818.81 2898102.70 671.00 41.20 Tres_Amigos DDHSJG97-006 213818.81 2898102.70 671.00 41.00 Tres_Amigos DDHSJG97-007 213699.21 2898121.26 622.79 89.00 Tres_Amigos DDHSJG97-008 213699.21 2898121.26 622.79 106.70 Tres_Amigos DDHSJG97-009 213669.38 2898111.15 620.80 152.40 Tres_Amigos DDHSJG97-010 213669.38 2898111.15 620.80 115.80 Tres_Amigos DDHSJG97-011 213659.45 2898065.82 620.00 47.70 Tres_Amigos DDHSJG97-012 213659.45 2898065.82 620.00 91.40 Tres_Amigos DDHSJG97-013 213744.42 2898165.90 629.00 156.40 Tres_Amigos DDHSJG97-014 213740.61 2898129.15 629.00 73.00 Tres_Amigos DDHSJG97-015 213097.83 2897179.01 710.00 55.77 San_Pablo DDHSJG97-016 213117.82 2897184.01 707.37 48.76 San_Pablo DDHSJG97-017 213094.67 2897148.96 711.81 54.90 San_Pablo DDHSJG97-018 213138.82 2897210.01 698.89 42.67 San_Pablo DDHSJG97-019 213049.82 2897150.00 709.89 39.60 San_Pablo DDHSJG97-020 213072.82 2897176.01 708.79 47.90 San_Pablo DDHSJG97-021 213078.82 2897202.01 703.53 42.70 San_Pablo DDHSJG97-022 213141.82 2897239.00 689.93 22.20 San_Pablo DDHSJG97-023 213087.82 2897236.00 695.00 14.78 San_Pablo DDHSJG97-024 213111.82 2897237.00 695.00 52.50 San_Pablo DDHSJG97-025 213105.82 2897128.01 715.93 45.72 San_Pablo DDHSJG97-026 213106.03 2897205.80 706.98 66.45 San_Pablo DDH

San José de Gracia Project - MEXICOHOLE EASTING NORTHING ELEVATION HLENGTH AREA TYPESJG97-027 212959.36 2896768.68 730.00 82.30 La_Union DDHSJG97-028 212959.36 2896768.68 730.00 28.04 La_Union DDHSJG97-029 212930.80 2896795.04 730.00 44.20 La_Union DDHSJG97-030 212950.<strong>43</strong> 2896714.94 698.00 100.58 La_Union DDHSJG97-031 212948.68 2896737.70 710.00 100.58 La_Union DDHSJG97-032 212912.93 2896706.96 690.00 128.00 La_Union DDHSJG97-033 212905.33 2896744.88 692.00 161.54 La_Union DDHSJG97-034 212946.97 2896685.16 688.00 65.53 La_Union DDHSJG97-035 213717.76 2898197.62 628.00 208.79 Tres_Amigos DDHSJG97-036 213672.46 2898209.97 632.27 268.22 Tres_Amigos DDHSJG97-037 213749.76 2898168.61 630.00 118.30 Tres_Amigos DDHSJG97-039 213749.76 2898168.61 630.00 118.00 Tres_Amigos DDHSJG97-040 213749.76 2898168.61 630.00 140.50 Tres_Amigos DDHSJG97-041 213724.32 2898128.44 628.00 93.30 Tres_Amigos DDHSJG97-042 213726.76 2898183.62 629.00 128.50 Tres_Amigos DDHSJG97-0<strong>43</strong> 213726.76 2898183.62 629.00 127.13 Tres_Amigos DDHSJG97-044 213724.76 2898206.62 630.00 150.91 Tres_Amigos DDHSJG97-045 213672.46 2898209.96 632.27 192.38 Tres_Amigos DDHSJG97-046 213651.76 2898222.61 633.00 239.30 Tres_Amigos DDHSJG97-047 213772.37 2898146.82 637.20 137.20 Tres_Amigos DDHSJG97-048 213558.02 2897809.47 627.82 118.90 La_Ceceña DDHSJG97-049 213558.02 2897809.47 627.82 145.73 La_Ceceña DDHSJG97-050 213<strong>43</strong>0.76 2897945.62 668.00 155.49 La_Ceceña DDHSJG97-051 212670.54 2895765.14 540.00 93.90 La_Purisima DDHSJG97-052 212948.56 2895742.98 512.00 26.52 La_Purisima DDHSJG97-053 212869.56 2895514.98 509.00 117.07 La_Purisima DDHSJG97-054 212946.56 2895454.98 510.00 80.50 La_Purisima DDHSJG97-055 213052.00 2895729.00 465.00 150.30 La_Purisima DDHSJG97-056 213000.00 2895711.00 491.00 186.90 La_Purisima DDHSJG97-057 213000.00 2895734.97 485.00 130.80 La_Purisima DDHSJG97-058 212956.00 2895728.00 510.00 35.67 La_Purisima DDHSJG97-059 212956.05 2895718.85 511.82 38.41 La_Purisima DDHSJG97-060 212893.56 2895700.98 511.00 74.09 La_Purisima DDHSJG97-061 213086.93 2895413.41 486.96 38.11 La_Purisima DDHSJG97-062 213086.93 2895413.41 486.96 54.88 La_Purisima DDHSJG97-063 212869.00 2896326.00 590.00 141.80 La_Purisima DDHSJG97-064 211960.00 2895020.00 420.13 140.55 La_Purisima DDH

San José de Gracia Project - MEXICOAppendix VIIList of assay composites from all drilling at San José de Gracia

San José de Gracia Project - MEXICOHole ID FROM TO LENGTH m AU_GPT AG_GPT CU_PPM PB_PPM ZN_PPM92-001 46.00 60.96 14.96 2.577 0.0 0 0 097-001 37.50 40.00 2.50 7.142 83.2 24592 0 097-002 42.70 58.20 15.50 3.991 15.1 3780 0 097-003 2.00 4.00 2.00 7.220 4.5 106 0 097-003 50.00 52.00 2.00 2.710 5.8 1789 0 097-004 70.00 73.00 3.00 2.153 6.8 1875 0 097-005 25.90 27.80 1.90 3.612 41.4 10633 983 1237397-006 27.80 29.65 1.85 6.460 45.5 11038 269 320897-007 57.00 67.00 10.00 3.414 12.2 937 0 097-007 71.00 75.00 4.00 2.685 2.0 339 0 097-007 83.00 85.30 2.30 8.660 6.5 1340 97 1364697-009 63.50 65.00 1.50 4.150 3.8 525 405 356997-009 100.00 102.00 2.00 13.530 3.1 2<strong>43</strong> 115 495497-010 88.40 89.90 1.50 10.280 7.7 340 2880 2700097-012 24.50 26.20 1.70 8.570 34.9 3890 10000 <strong>43</strong>00097-013 95.00 107.50 12.50 20.798 21.8 4276 562 150197-014 50.30 51.50 1.20 3.590 35.2 6745 494 189597-027 20.30 21.30 1.00 6.140 12.5 497 2396 38197-029 38.10 41.20 3.10 3.631 8.6 1095 208 63897-030 75.00 78.10 3.10 4.621 9.1 5036 23 10397-031 87.00 91.00 4.00 2.838 6.7 3395 26 5697-033 95.10 97.10 2.00 2.240 2.4 454 15 15697-034 45.70 47.70 2.00 8.870 4.1 1354 16 11597-035 84.00 86.00 2.00 2.060 2.1 174 193 4<strong>43</strong>497-035 121.50 122.60 1.10 4.990 29.4 1233 105 24697-035 126.00 132.00 6.00 8.838 14.2 2753 34 134997-036 68.50 70.50 2.00 3.280 1.6 90 134 104197-036 119.50 121.50 2.00 6.400 11.5 585 191 171097-037 35.90 37.20 1.30 11.970 15.0 1922 2227 3600097-039 40.20 <strong>43</strong>.20 3.00 29.500 44.6 5778 9485 7450097-040 78.00 80.00 2.00 14.880 10.9 1863 1656 100297-040 92.00 94.00 2.00 10.810 16.3 3836 138 784597-040 104.00 108.00 4.00 7.205 4.8 400 <strong>43</strong> 248297-041 80.00 86.00 6.00 3.880 31.8 9555 253 356597-042 67.00 69.00 2.00 5.160 2.2 25 36 11097-042 88.70 93.00 4.30 3.016 6.8 2503 <strong>101</strong> 516397-042 99.00 105.00 6.00 2.484 3.2 568 67 793897-042 113.00 117.50 4.50 5.060 13.4 3845 41 65097-0<strong>43</strong> 74.70 76.00 1.30 4.230 22.2 6696 376 696997-044 86.00 88.00 2.00 7.780 2.3 258 53 366497-044 118.00 120.00 2.00 5.170 1.9 460 16 404797-044 134.00 136.00 2.00 2.100 5.3 998 38 199597-044 141.50 142.80 1.30 7.060 20.6 5769 33 1001

San José de Gracia Project - MEXICOHole ID FROM TO LENGTH m AU_GPT AG_GPT CU_PPM PB_PPM ZN_PPM97-045 92.00 94.00 2.00 2.080 3.4 492 220 626497-045 100.00 106.00 6.00 11.462 3.4 262 189 165597-045 122.00 124.00 2.00 3.480 4.3 540 19 197797-045 136.00 138.00 2.00 12.320 1.9 224 12 23297-045 144.00 146.00 2.00 2.820 1.5 91 42 317697-045 172.00 176.00 4.00 1.978 12.5 2634 118 20797-046 167.90 169.60 1.70 2.790 31.2 10519 56 39297-047 124.94 132.00 7.06 7.506 15.4 931 2728 3423097-048 61.00 64.02 3.02 2.550 7.5 183 8716 4799997-050 69.00 71.00 2.00 5.020 166.0 2236 608 31597-050 78.00 80.00 2.00 8.530 10.8 547 7830 2000097-055 24.40 27.40 3.00 5.240 28.5 6304 3510 1827597-055 114.00 116.00 2.00 2.180 2.9 70 841 8497-056 137.50 140.50 3.00 2.220 1.0 201 126 23297-063 54.50 61.50 7.00 3.132 4.0 657 150 2097-063 67.30 70.00 2.70 8.450 11.1 6822 24 3507-006 93.90 95.80 1.90 2.400 8.5 4007 2 21707-007 85.50 87.50 2.00 24.550 45.0 4919 285 68007-008 115.80 118.10 2.30 7.600 18.9 201 61 4007-009 94.00 96.10 2.10 7.069 9.6 2408 2 8107-009 167.40 170.55 3.15 8.240 2.0 14 16 11007-010 127.15 134.10 6.95 1.530 2.2 1282 2 2707-012 19.70 23.90 4.20 10.451 10.0 1499 13 8107-016 7.50 10.00 2.50 2.020 3.2 17 14 1907-016 32.45 34.60 2.15 5.200 4.2 2204 7 11807-021 158.70 160.80 2.10 75.900 76.0 16104 658 2607-023 69.10 70.50 1.40 9.160 24.5 6298 345 35507-025 98.70 100.60 1.90 2.240 3.9 2322 2 4407-026 51.40 53.30 1.90 3.780 3.1 268 246 30507-026 65.90 67.80 1.90 34.000 18.7 2063 94 46907-027 142.80 148.85 6.05 13.723 28.6 106<strong>43</strong> 159 36107-028 <strong>101</strong>.80 104.10 2.30 4.127 7.3 1377 1294 37<strong>43</strong>07-029 114.00 115.20 1.20 6.570 9.4 1561 53 16207-029 130.60 132.30 1.70 23.860 <strong>43</strong>.0 9379 14 10307-029 181.50 182.90 1.40 2.160 1.0 <strong>43</strong> 7 607-030 124.95 126.55 1.60 5.900 19.2 1122 339 133407-030 145.65 146.55 0.90 4.300 13.4 10938 14 6207-031 94.25 98.05 3.80 31.320 69.6 10095 2283 74<strong>43</strong>07-035 134.00 136.20 2.20 2.700 1.4 28 49 3007-036 91.40 92.82 1.42 4.470 2.6 58 122 58907-037 251.30 253.50 2.20 4.880 23.0 119 96 4907-039 24.55 26.60 2.05 2.600 0.3 53 61 1607-039 197.55 200.80 3.25 10.926 4.6 391 2 100

San José de Gracia Project - MEXICOHole ID FROM TO LENGTH m AU_GPT AG_GPT CU_PPM PB_PPM ZN_PPM07-042 16.10 18.30 2.20 3.020 2.0 55 71 47807-042 107.40 108.50 1.10 3.260 1.8 217 32 85108-048 219.46 228.66 9.20 4.392 7.5 2794 2 7508-050 1<strong>43</strong>.75 145.55 1.80 2.000 2.4 352 2 11708-051 183.55 192.60 9.05 22.952 13.6 3964 28 26008-054 20.50 21.50 1.00 2.760 1.8 <strong>43</strong> 27 16508-054 155.80 158.00 2.20 2.640 10.1 2902 175 274508-056 41.70 42.80 1.10 2.<strong>43</strong>0 5.0 36 64 18608-060 235.70 238.60 2.90 13.882 12.5 5782 5 5408-061 27.80 31.30 3.50 2.007 24.8 4541 2218 151008-061 153.90 155.40 1.50 2.110 2.4 270 9 3508-068 135.40 137.00 1.60 18.163 8.3 366 326 223408-070 120.50 121.60 1.10 9.500 2.7 61 12 55508-076 32.75 34.85 2.10 36.093 47.8 4280 7982 1060408-077 271.90 273.20 1.30 2.390 48.8 1090 284 28508-080 125.30 128.40 3.10 4.822 4.4 1052 6 5808-080 187.30 188.40 1.10 3.200 3.8 1498 2 6408-082 151.60 153.30 1.70 18.160 0.1 38 2 35708-087 91.32 91.87 0.55 6.010 2.2 542 3 2808-089 173.80 175.10 1.30 4.114 35.6 10000 67 6208-090 190.70 191.90 1.20 11.554 48.5 10000 230 17008-090 196.40 197.40 1.00 4.114 4.5 2757 18 2308-091 191.20 191.40 0.20 16.800 12.0 2703 19 4008-092 124.80 125.80 1.00 23.314 0.5 10 89 3108-092 144.60 145.00 0.40 30.445 37.7 10000 69 6408-093 138.40 138.80 0.40 28.525 20.6 <strong>43</strong>95 59 7508-096 247.00 247.55 0.55 4.937 4.9 412 28 12308-097 227.69 229.75 2.06 17.040 20.0 5632 286 <strong>43</strong>808-098 230.70 231.20 0.50 2.160 2.9 648 19 108-102 158.66 162.47 3.81 5.097 6.6 1377 128 189208-102 206.70 208.20 1.50 8.180 2.9 314 46 672608-103 193.87 195.12 1.25 2.950 13.3 7109 2 10908-103 215.18 216.30 1.12 2.570 19.4 9275 3 11908-104 67.45 68.80 1.35 26.200 327.9 16049 2346 13408-108 227.70 229.20 1.50 2.360 3.2 2220 28 20208-110 56.37 57.87 1.50 3.500 9.1 573 261 154508-110 74.90 76.26 1.36 2.660 1.6 136 93 157308-110 165.45 167.25 1.80 2.640 5.0 1383 5 26008-112 167.10 168.82 1.72 2.352 7.7 3131 32 33108-113 25.10 26.70 1.60 13.400 3.2 28 102 904408-113 190.20 193.30 3.10 3.418 2.2 722 4 7008-114 162.00 163.70 1.70 8.280 6.8 2026 24 163808-115 97.60 99.05 1.45 3.400 3.3 605 314 13229

San José de Gracia Project - MEXICOHole ID FROM TO LENGTH m AU_GPT AG_GPT CU_PPM PB_PPM ZN_PPM08-115 153.30 159.00 5.70 8.314 8.3 1692 20 73908-116 82.50 84.60 2.10 3.000 6.7 2155 309 663608-116 134.80 138.10 3.30 21.740 9.9 618 355 151508-117 9.60 11.30 1.70 4.780 2.8 129 1397 809908-117 128.75 130.65 1.90 3.260 2.4 224 375 722708-118 27.84 31.88 4.04 5.182 30.5 38<strong>43</strong> 7980 5676908-118 52.65 53.73 1.08 13.700 13.9 619 9753 4531708-118 62.30 63.50 1.20 2.100 2.3 222 263 282908-120 67.00 68.65 1.65 2.180 15.5 1048 425 1020